Jio Platforms Ltd. plans to conduct an Initial Public Offering (IPO) with a target valuation of approximately 11 trillion rupees, equivalent to 114 billion US dollars. According to information obtained from sources familiar with the matter, the company has completed demand assessment for this offering and is likely to begin meetings with potential investors this week to discuss pricing and valuation.
India's largest wireless operator intends to launch the IPO in the week starting October 19 and complete the listing by October 30. It should be noted that final dates, valuation, and other details may change as discussions are ongoing.
At a valuation of $114 billion, Jio's shares would be worth approximately $3.4 billion, exceeding the sum of 27,870 crore rupees ($2.9 billion) raised by Hyundai Motor Co.'s subsidiary in India in 2024.
This offering by Jio increases activity in the Indian IPO market. In the quarter from July to September, proceeds from listings exceeded $9 billion, setting a record for that period. Thus, the total amount raised this year has surpassed $13 billion.
The company has appointed 19 banks to handle the stock sale, including Kotak Mahindra Capital Co., Morgan Stanley, BofA Securities Inc., Axis Capital Ltd., BNP Paribas, and Citigroup Inc.
Other Market Aspects
The valuation of Jio would also make it the third most valuable publicly traded company in India, trailing its parent company Reliance, whose market capitalization is around $169 billion. Jio's main competitor in the telecommunications sector, Bharti Airtel Ltd., is valued at approximately $116 billion.
Jio filed a draft prospectus in June for the placement of up to 270 million new shares, corresponding to approximately 2.93% of its equity after issuance, according to Bloomberg calculations. Higher valuations were previously cited, including a range of $130 to $170 billion. However, the downturn in the stock market has affected the pricing ambitions of several IPOs in the country, forcing even the large offering by National Stock Exchange of India Ltd. to scale back the deal.
In June, local brokerage firms Motilal Oswal Financial Services valued Jio between $115 and $118 billion, while Dolat Capital valued the company at approximately $110 billion.