Jio Platforms Stock Jumps 21% on Record IPO Debut, Valuing Telecom Unit at $131.5 Billion

In brief

• Akcje Jio Platforms wzrosły o około 21% podczas debiutu na giełdzie w Mumbai po rekordowej ofercie publicznej.
• Firma pozyskała 302 miliardy rupii, co stanowi największy IPO w historii Indii.
• Po notowaniu, wycena Jio osiągnęła około 131.5 miliarda dolarów, umacniając jej pozycję jako drugiej największej spółki notowanej w kraju.
• Jio obsługuje ponad 530 milionów klientów i jest drugą siłą pod względem subskrybentów w Indiach.

Jio's Strong Market Debut

Shares of Reliance Jio Platforms, the digital services and telecommunications division owned by Mukesh Ambani, rose by approximately 21% when trading commenced in Mumbai on Wednesday (Ambani’s Jio surges 21% in Mumbai debut as valuation soars to $131.5 billion – Investing.com) (Jio shares surge 21% in market debut after blockbuster India IPO – TechCrunch) (Meta- and Google-backed Jio Platforms’ shares soar over 21% on trading debut after record IPO – CNBC) (Jio shares surge over 20% in blockbuster market debut – Investing.com). The stock opened at 1,358 rupees, compared with the initial public offering price of 1,119 rupees, and reached a peak of 1,374.50 rupees.

IPO Details and Investor Demand

Through the sale of 270 million shares, Jio raised 302 billion rupees, or roughly $3.2 billion, the largest IPO in India's history (Shares of Ambani’s Jio rise 21% in India’s biggest IPO – Financial Times). The offering took place between October 21 and October 22. Exchange data shows that demand for the shares exceeded the available pool by a factor of 22.19. More than 13.8 million people submitted applications, and total bids reached about $77 billion.

Market Valuation Comparison

Jio surpasses Bharti Airtel and HDFC Bank in market capitalization.

Jio's Valuation and Market Value Comparison:

• Valuation at the offering: about $131.9 billion.
• Market value after listing: about $131.5 billion.
• Valuation in 2020, when Meta and Google invested: about $65 billion.

Strategic Significance for Reliance

The listing is Reliance's first public offering in two decades. It supports Ambani's plan to transform Reliance from a conglomerate focused on oil and chemicals into a company spanning consumer products and technology.

Position in the Telecom Market

The telecom operator serves more than 530 million customers and ranks second by number of subscribers in the country, behind only China Mobile.