Mukesh Ambani’s Jio Platforms Ltd. secured full subscription for its initial public offering (IPO) within the first two hours of bidding on Wednesday, putting India’s largest-ever share sale on course for a landmark stock market debut.
Bids exceeded the 197.5 million shares on offer by 10.40 am, according to BSE data cited by Bloomberg. The $3.1 billion offering marks Reliance Industries’ return to the IPO market after 20 years and comes a decade after Jio disrupted India’s telecom sector with free voice calls and low-cost mobile data.
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Jio IPO Draws Early Investor Demand
Institutional investors subscribed 3.25 times, while the category reserved for wealthy investors received bids for 26% of its allocation. Retail investors had bid for nearly 23% of the shares reserved for them at the time of the reported figures.
Priced between Rs 1,065 and Rs 1,119 per share, the IPO values Jio Platforms at about $107 billion at the upper end. This is below Bharti Airtel’s roughly $123 billion valuation, its closest listed telecom rival.
Anchor investors, including BlackRock, Fidelity Management & Research, Capital Group and Allianz, collectively committed $854 million at the top of the price range.
The public subscription window runs from October 21 to October 23.
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Telecom Growth Faces a Profitability Test
Jio has more than 500 million subscribers and leads India’s wireless and fixed broadband markets. However, subscriber numbers alone may not determine its future valuation as the market matures and investors increasingly focus on revenue generated per customer.
For the quarter ended June, Jio reported average revenue per user (ARPU) of Rs 216, against Bharti Airtel’s Rs 264. Airtel’s earnings before interest, tax, depreciation and amortisation margin stood at 57.4%, compared with Jio’s 53.3%.
Jio’s valuation stands at 33.2 times trailing earnings, against nearly 37 times for Airtel.
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Debt Reduction and New Technology Opportunities
Launched in 2016, Jio rapidly gained market share through free calls and cheap data, triggering a price war that forced rivals to exit, merge or face financial distress. It became the market leader within three years.
The IPO proceeds are expected to help Jio repay a substantial portion of its debt. The company is also eyeing opportunities in satellite communications, digital services and artificial intelligence, although regulatory approval for satellite services remains pending for Jio and Elon Musk’s Starlink.
Akash Ambani, who is leading the IPO, has said the company wants to deliver more services rather than rely solely on tariff increases.
The Jio IPO’s strong opening signals investor appetite, but the next test is whether the company can turn its vast subscriber base into stronger revenue and profits. Its public-market performance will offer an important measure of confidence in India’s telecom and digital-services growth story.
Samarjit Kaur is a journalist and communications professional covering technology & emerging digital trends. With a focus on clarity and context, she reports on developments shaping industries and governance. When not reporting, she chooses to plug-in and relax on her playlists and plan her next bucket-list trips!
