Jio Platforms IPO: RIL-led telco targets Rs 11 lakh crore valuation; October listing likely

Jio Platforms is likely to seek a valuation of about Rs 11 lakh crore ($114 billion) in its planned initial public offering (IPO), which may still be India’s largest-ever listing, reported Bloomberg citing the people familiar with the matter. The valuation is lower than earlier expectations, Bloomberg reported.

The telecom and digital services arm of Mukesh Ambani’s Reliance Industries Ltd (RIL) has finished gauging demand for the offering and is likely to begin meetings with potential investors this week to discuss valuation and pricing, the people said. They added that India’s largest wireless operator is looking to open its IPO in the week of 19 October and list before 30 October, though the final dates, valuation and other details could still change.

A representative for Jio did not immediately respond to a request for comment. At the proposed valuation, Jio would become India’s third most valuable publicly traded company, behind parent Reliance, which has a market capitalisation of about $169 billion (Rs 16.4 lakh crore) and Bharti Airtel Ltd, Jio’s main rival telco, valued at about $116 billion (Rs 11.22 lakh crore).

Jio filed its draft prospectus in June for an offering of as many as 27 crore new shares, equivalent to about 2.93 per cent of its post-issue equity capital, according to Bloomberg calculations. Earlier valuation figures under discussion had been higher, including in the $130 billion to $170 billion range at one stage.

Pricing ambitions for several IPOs in India have been affected by a stock rout, including the National Stock Exchange of India Ltd.’s (NSE) offering, which was forced to downsize its deal. In June, Motilal Oswal Financial Services estimated Jio’s valuation at between $115 billion and $118 billion, while Dolat Capital valued the company at around $110 billion.

At a $114 billion valuation, the Jio shares being offered would be worth about $3.4 billion (Rs 32,000-32,500 crore), which would still be higher than the Rs 27,870 crore ($2.9 billion) raised by Hyundai Motor India Ltd in 2024. Jio’s share sale would add to what has already been a busy year for India’s IPO market.

The company has appointed 19 banks to work on the share sale, including Kotak Mahindra Capital, Morgan Stanley, BofA Securities, Axis Capital, BNP Paribas and Citigroup. As things stand, Jio is preparing to move ahead with investor meetings and a possible October listing, with the final valuation and timetable still under discussion.