Jio’s Record $3.2B IPO Opens Monday, Priced at Discount to Rival as $20B in Pre-Orders Flood In

Jio Platforms Ltd. opens its initial public offering on Oct. 21, aiming to raise about $3.2 billion in what is set to become India’s largest-ever stock market debut.

The telecom and digital arm of Reliance Industries Ltd. set a price band of 1,065 to 1,119 rupees per share. At the upper end, Jio will issue up to 27 crore fresh equity shares, raising 30,213 crore rupees. That surpasses Hyundai Motor India’s 2024 record of 27,858.75 crore rupees.

The valuation at the top of the band is roughly 10.3 lakh crore rupees ($108 billion). That puts Jio at a 34x price-to-earnings ratio based on FY26 earnings, cheaper than the 41x multiple commanded by rival Bharti Airtel Ltd., according to Uday Kotak, chairman of Kotak Investment Bank, the IPO’s lead manager. Kotak called Jio “one of a kind” and attractive on a relative basis.

**Pre-IPO Demand Surges**

Despite volatile markets marked by persistent foreign outflows, demand has been strong. Large investors have shown interest worth about 2.5 lakh crore rupees before the issue opened, according to India Today. Bloomberg reports have placed potential institutional bids above $20 billion.

Sovereign wealth funds from Singapore, Norway, Abu Dhabi and Qatar are said to be seeking allocations, alongside domestic institutions such as LIC, SBI Mutual Fund and HDFC Mutual Fund. Global asset managers including BlackRock, Fidelity and Capital Group have also indicated interest, according to people familiar with the matter cited by the Economic Times.

Jio has already drawn more than $20 billion in bids from overseas investors including Fidelity Management & Research, Allianz SE and Capital Group, the Economic Times reported, citing people familiar with the matter.

The anchor book will close on Oct. 19, two days before the IPO opens, giving the first clear picture of confirmed institutional participation. The issue closes on Oct. 23.

**A Pure Fresh Issue, No Exits**

Unlike many recent mega-IPOs in India, Jio’s offering contains no secondary sale component. All proceeds from the fresh issue of up to 27 crore shares will flow directly into the company. Reliance plans to use the funds to prepay up to 27,500 crore rupees of outstanding debt at its core telecom unit, Reliance Jio Infocomm, and for general corporate purposes.

Akash Ambani, Jio Platforms’ managing director, said the IPO proceeds will eliminate $3 billion in net debt, with future growth funded through free cash flow that represents 30% of annual revenue of about 1.5 lakh crore rupees.

The fresh-issue structure results in equity dilution of only about 2.9%, leaving parent Reliance Industries with a 66.43% stake after listing.

**Reservations for Employees and Shareholders**

Shares worth up to 500 crore rupees are reserved for eligible Jio Platforms employees, with a maximum application size of 5 lakh rupees. A separate quota of 2,500 crore rupees is set aside for eligible Reliance Industries shareholders who held shares as of Oct. 14. That reservation is equivalent to about 9.3% of the total issue size.

**Implications for Reliance and Bharti Airtel**

The IPO will create a direct valuation benchmark for Jio, which could prompt investors to reassess the holding company discount applied to Reliance Industries. RIL’s stake in Jio is valued at about 6.7 lakh crore rupees at the top of the band; a 30% holding company discount would reduce its attributable value to roughly 4.7 lakh crore, according to NDTV Profit. That is about 30% of RIL’s current market capitalization.

Jio has been RIL’s fastest-growing major business. Its EBITDA rose at a 17.5% compound annual rate from FY23 to FY26, compared with 14.6% for retail and a decline of 0.8% for the oil-to-chemicals business.

For Bharti Airtel, Jio’s listing provides a fresh valuation benchmark for India’s telecom sector. However, the scope for a re-rating may be limited because Jio’s valuation at $108 billion is below Airtel’s current market value of $125 billion.

The listing could also put a spotlight on the stakes held by private equity investors including Silver Lake, Vista Equity Partners, General Atlantic, KKR and TPG, who collectively own close to 12% of Jio. Any future sale of these holdings could increase supply and weigh on the stock.

**A New Generation of Investors**

The IPO tests whether the Reliance brand—for decades a gateway to stock ownership for middle-class Indians—still resonates with a younger investor base. Nearly 40% of India’s 130 million registered stock-market investors are under 30, according to National Stock Exchange data.

Older shareholders like Mahendra Chheda, a 69-year-old former floor trader, recall the 1977 Reliance IPO that created India’s “equity cult.” But his son Hardik, 44, told the Economic Times he plans to take profit soon after listing. Prathamesh Gokhale, 24, said he will bid for the IPO and sell half for a quick profit. “Limited capital makes it crucial to free up money for other investments,” he was quoted as saying.

A 2024 study by the market regulator found that retail investors sold 40% of their IPO allotment within a week of listing.

**What to Watch**

Key milestones in the coming days: anchor allocation on Oct. 19, subscription numbers from Oct. 21, and listing expected roughly a week after the Oct. 23 close. The same price band applies to all investors, from individuals to global funds.