Jio Platforms, a telecommunications and digital company under Reliance Industries owned by India’s second-richest billionaire Mukesh Ambani, successfully completed its initial public offering (IPO) with all shares fully subscribed in less than two hours after opening today. This $3.2 billion IPO is expected to be among the largest in India.
Jio Platforms, a subsidiary of Reliance Industries owned by billionaire Mukesh Ambani—the second richest person in India—received full subscription for its IPO within less than two hours after opening on 21 October. This marks a significant offering in the Indian capital markets and the first IPO by the Reliance group in 20 years.
Jio Platforms aims to raise approximately 302 billion Indian rupees (about $3.2 billion) through new share issuance, pricing shares at 1,065 to 1,119 rupees each, with subscription closing on 23 October. Proceeds will be used to repay loans taken to build and expand Reliance Jio Infocomm, India’s largest private telecom operator.
Jio Platforms is the parent company of Jio telecommunications, which serves over 500 million users, making it the world’s second largest telecom operator by single-country user base, after China Mobile. The company also counts global investors such as Meta, Google (Alphabet), and various domestic and international institutional investors.
This share offering values Jio Platforms at up to $108.3 billion. If trading begins as scheduled on 28 October, the company could become one of India’s highest market-cap firms, with Bharti Airtel—its main competitor—valued around $123.38 billion.
Stock exchange data shows institutional investors subscribed to 3.92 times the allocated shares, while retail investors, allocated about one-third of total shares, subscribed at 0.35 times the allotted amount at the time of reporting.
The rapid subscription surprised analysts, as large IPOs in India typically fill closer to the end of the subscription period, such as the National Stock Exchange’s $2.4 billion IPO, which had only 42% subscription on day one, and Hyundai Motor India’s IPO with 18% subscription on day one.
Aiswarya Dathish, founder of Fident Asset Management, said Jio’s success stems from its strong telecom business fundamentals. Jio transformed India’s telecom industry and offered shares at a valuation reasonable relative to the company’s fundamentals.
Jio’s telecom business launched in 2016 under the leadership of Akash Ambani, Mukesh Ambani’s son, with a strategy of offering very low-cost high-speed internet and free voice calls, quickly capturing market share from competitors like Bharti Airtel and Vodafone Idea. Currently, over 90% of Jio Platforms’ revenue comes from telecommunications.
For the fiscal year ending March, Jio Platforms reported revenues of about $15.5 billion and profits near $3.2 billion. Analysts see its scale, telecom network, and large customer base as drivers for medium- to long-term growth.
Before the IPO, the company allocated shares worth $853 million to large investors, including the Abu Dhabi Investment Authority and BlackRock. These allocations received subscription commitments exceeding $25 billion, and earlier reports showed institutional subscription was about 30 times the pre-allocated shares.
The IPO success occurred despite a sluggish overall Indian stock market, with the Nifty 50 index down over 12% this year. However, analysts note the IPO market remains attractive due to companies offering shares at appealing valuations and the fast-growing tech sector continuing to draw investment.
However, Jio Platforms faces risks from intense telecom industry competition, including price wars and potential customer churn to rivals. The company also confronts regulatory uncertainty, as the Indian government closely regulates telecom operations.
Elon Musk, billionaire founder of SpaceX which provides satellite internet via Starlink, previously criticized Mukesh Ambani on platform X during Starlink’s pending final approval to operate commercially in India. Musk stated Starlink would offer affordable pricing for Indians and questioned Ambani’s influence in the country. Ambani and Reliance have not directly responded to these criticisms.
Reliance Industries, listed since 1977, has many long-term retail investors. Since 1990—the earliest data available from LSEG—Reliance’s stock on the Mumbai market has risen approximately 330-fold, reflecting its role as a long-term investment for many Indians.
The Jio Platforms IPO represents a transition to younger Ambani family leadership, with Akash Ambani, Managing Director of Jio Platforms, and Isha Ambani, Executive Director of Reliance Retail Ventures and Mukesh Ambani’s twin daughter, leading investor presentations. Mukesh Ambani did not personally meet with investors or shareholders this time.
Mukesh Ambani had announced plans to list Jio by 2019, targeting completion within five years. However, the plan was postponed multiple times, including in 2025, with reduced IPO demand after the Iran war impacting financial markets contributing to delays.
This IPO occurred during a major Hindu festival period considered auspicious for spending and investing in India. Reports also indicate Reliance paid over 400,000 employees about 15 days early this month and helped facilitate brokerage account openings for those interested in subscribing to the IPO. The company did not respond to media inquiries about these reports.