Jio shares surge 21% in market debut after India IPO
Jio Platforms, billionaire Mukesh Ambani's Indian telecom unit backed by Meta and Google, surged 21% in its market debut after raising $3.2 billion in India's largest IPO.
Stock photo for illustration only, not from the actual event
- Jio Platforms raised $3.2 billion in India's largest and most subscribed stock market IPO to date.
- The shares opened 21% higher at 1,358 rupees (around $14) compared to the IPO price of 1,119 rupees.
- The offering drew over $77 billion in investor bids with more than 13.8 million applicants participating.
- Jio plans to allocate up to 275 billion rupees of the proceeds to pay down debt at Reliance Jio Infocomm.
India's stock market witnessed a historic debut as Jio Platforms, the digital and telecom services arm controlled by billionaire Mukesh Ambani with backing from tech giants Meta and Google, saw its shares surge 21% on its first day of trading. The explosive market entry followed a blockbuster initial public offering that successfully secured $3.2 billion, cementing its status as the largest and most heavily subscribed stock offering in the country.
Trading commenced on Wednesday with shares opening at 1,358 rupees, equivalent to roughly $14 each, marking a solid jump from the established IPO price of 1,119 rupees or about $12. This initial surge propelled Jio's market valuation to approximately 12.5 trillion rupees, or around $131.9 billion, positioning it as the second most valuable publicly listed company in India, trailing only its parent firm Reliance Industries, which commands a valuation of about 16 trillion rupees or roughly $168.6 billion. Back in 2020 during investments from Meta and Google, Jio was valued at up to 4.91 trillion rupees, or about $65 billion at the time.
Investor appetite for the offering proved extraordinary, with exchange data showing that the subscription window spanning October 21 to 22 drew bids for 22.19 times the total shares available. More than 13.8 million individual and institutional applicants stepped forward, underscoring overwhelming market confidence in the nation's premier telecommunications provider.
Stock photo for illustration only, not from the actual event
Financial metrics highlight the company's robust underlying performance, with Jio posting a profit of 300.5 billion rupees, roughly $3.2 billion, on total revenues of 1.47 trillion rupees, or about $15.5 billion, for the fiscal year concluding in March 2026. Both figures represented a growth of approximately 15% over the preceding year, while June quarter results showed revenue expanding nearly 12% alongside a 9% rise in profit.
The massive public offering underscores the strategic financial restructuring of India's leading telecom player, providing essential capital to streamline balance sheets and maintain aggressive investments in nationwide digital infrastructure and next-generation connectivity.
Out of the fresh capital raised through the listing, Jio intends to channel up to 275 billion rupees, equating to about $2.9 billion, toward reducing outstanding debt obligations held by its telecom subsidiary, Reliance Jio Infocomm. The remaining funds are designated for general corporate operations. Records showed the company carried total borrowings of 613.7 billion rupees, or around $6.5 billion, as of June 30.
The digital conglomerate previously secured multibillion-dollar backing from prominent American institutional investors during the peak of the COVID-19 pandemic in 2020. Meta, operating under its former identity Facebook, poured $5.7 billion into the firm, while Google contributed $4.5 billion, alongside additional investments from General Atlantic, Silver Lake, and Vista Equity Partners. None of these major backers chose to offload their holdings during the IPO, which consisted entirely of newly issued primary shares.
Source: TechCrunch
Found something wrong in this article? Report an issue with this article
Comments
Leave a Comment