Jio Platforms, the Meta- and Google-backed telecom giant in India, is gearing up for its historic initial public offering (IPO), aiming to raise up to $3.2 billion. The company plans to sell 270 million shares between October 21 and October 23, with each share priced between 1,065 and 1,119 rupees. This IPO will be India's largest in rupee terms but slightly smaller than Hyundai Motors' $3.3 billion offering in 2024.
At the top end of the price range, Jio Platforms is valued at around $108 billion, which is lower than initial expectations. Despite positioning itself as a tech company, investors remain skeptical, focusing on its core telecom business. Deven Choksey, managing director of DRChoksey Finserv, noted that while Jio's entertainment and gaming applications boost data consumption, the company's primary revenue still comes from selling internet data.
Jio, which has over half a million subscribers, will be valued less than Bharti Airtel, its closest competitor, which has a market cap of $117.5 billion. Reliance Industries, the parent company, holds more than 66% of Jio Platforms, with Meta Platforms' affiliate Jaadhu Holdings owning nearly 10% and Google International owning 7.7%. Neither Meta nor Google plans to sell their stakes in the IPO.
Adding to its ambitions, Jio Platforms is also planning to launch satellite communications services in India, potentially putting it in direct competition with Elon Musk's Starlink. Jio aims to set up a network of around 1,600 LEO satellites and 23 ground stations to expand connectivity across the country. Musk recently accused Jio's owner, Mukesh Ambani, of blocking Starlink's launch in India to maintain a monopolistic hold on the market.