Jio Platforms’ $3.2 Billion IPO Opens Oct. 21, Testing Market Appetite as Relative Pricing Draws Institutional Demand

Jio Platforms Ltd., the digital and telecom arm of Reliance Industries Ltd., opens its initial public offering on Oct. 21, with anchor investors bidding Oct. 19 and the issue closing Oct. 23. The company is seeking to raise up to 30,213 crore rupees ($3.2 billion) through a fresh issuance of 27 crore shares, surpassing Hyundai Motor India’s 2024 record of 27,858.75 crore rupees.

The price band is set at 1,065 rupees to 1,119 rupees per share, valuing the company at about 10.3 lakh crore rupees ($108 billion) at the upper end. At that valuation, Jio Platforms trades at 34 times FY26 earnings, compared with 41 times for its nearest listed peer, Bharti Airtel Ltd., according to multiple reports.

“Jio is one of a kind,” said Uday Kotak, founder of Kotak Mahindra Bank and the IPO’s book-running lead manager. Kotak said the price-to-earnings ratio of 34x makes the issue relatively attractive to investors, noting that it will be India’s largest IPO at 30,188 crore rupees at the top end.

Isha Ambani, director of Jio Platforms, said the company priced the issue “accessibly” to ensure investors can create long-term value. “For us, it is most important to be able to price this accessibly so that shareholders who come in can create long-term value along with the growth of Jio Platforms,” she said at a roadshow on Thursday, co-leading global investor meetings with her brother Akash Ambani, the company’s managing director.

Jio Platforms plans to use the IPO proceeds to eliminate $3 billion in net debt and fund future growth through free cash flow, which constitutes 30% of its annual revenue of about 1.5 lakh crore rupees, Akash Ambani said.

**Pre-IPO Demand Exceeds $20 Billion**

Even before the issue opens, large investors have shown interest worth about 2.5 lakh crore rupees, according to reports. Separate Bloomberg-based reports put potential institutional bids above $20 billion.

Sovereign wealth funds from Singapore, Norway, Abu Dhabi and Qatar are said to be interested, the reports said. Domestic institutional names include Life Insurance Corp. of India, SBI Mutual Fund and HDFC Mutual Fund, along with India’s top 10 mutual funds and top five insurers. Global asset managers such as BlackRock, Fidelity and Capital Group are also said to be keen. Overseas investors including Fidelity Management & Research, Allianz SE and Capital Group have indicated interest, according to people familiar with the matter as reported by Bloomberg.

These remain expressions of interest until confirmed through the anchor book on Oct. 19.

**Structure: Pure Fresh Issue, No Existing Shareholders Selling**

Unlike many recent large Indian IPOs that included an offer for sale (OFS) component, the Jio Platforms listing is a 100% fresh issue with zero secondary sale. Total issued shares will expand by about 2.9%, from 8,93,90,30,830 to 9,20,90,30,830, according to company filings. Reliance Industries holds a 66.43% stake in Jio Platforms before the issue.

All net proceeds will be retained within the company to prepay up to 27,500 crore rupees of debt at its core telecom subsidiary, Reliance Jio Infocomm, and for general corporate purposes.

**Implications for Reliance Industries and Bharti Airtel**

For Reliance Industries, the listing could make the value of its stake in Jio Platforms more transparent, but it may also prompt investors to reassess the holding company discount applied to the parent. Holding companies often trade below the sum of their subsidiary stakes, with discounts typically ranging between 25% and 50%. Reliance’s stake in Jio Platforms is valued at about 6.7 lakh crore rupees based on the indicated valuation. A 30% discount would reduce that to roughly 4.7 lakh crore rupees, equivalent to about 30% of Reliance’s market capitalisation.

Jio Platforms has been Reliance’s fastest-growing major business over the past three years. Its EBITDA rose from 47,034 crore rupees in FY23 to 76,255 crore rupees in FY26, a compound annual growth rate (CAGR) of 17.5%, compared with 14.6% for retail and 11.9% for oil and gas. The oil-to-chemicals business declined at a CAGR of 0.8%.

For Bharti Airtel, Jio’s listing offers a fresh valuation benchmark for the telecom sector. However, reports suggest Jio has cut its valuation from around 12 lakh crore rupees to 10.3 lakh crore rupees, narrowing the gap with Airtel’s $125 billion market value.

**Investor Profile: Legacy vs. Performance**

The IPO tests how much the Reliance brand matters to a new generation of Indian investors. India now has more than 130 million registered stock-market investors, nearly 40% of them under 30, according to National Stock Exchange data.

Mahendra Chheda, a 69-year-old former floor trader, said Reliance “set itself miles apart” under founder Dhirubhai Ambani, who built an equity cult through the 1977 IPO. But his son Hardik, 44, said he plans to take profit soon after Jio’s listing. “Retail investors owe a lot to the Ambanis for popularizing direct stock ownership, but we are now in a different era of financial markets,” he said.

Prathamesh Gokhale, 24, who is studying accountancy, said he plans to bid for the IPO and sell half his holding for a quick profit while keeping the rest for long-term gains. He said Jio’s growth outlook and valuation matter more than the Ambani legacy.

A study by the market regulator in 2024 found that retail investors sold 40% of their allotment within a week of listing, and about two-thirds when returns topped 20%.

**Application Details and Reservations**

Investors can apply through stockbrokers, banks or authorised IPO platforms using UPI or ASBA. The retail category covers applications up to 2 lakh rupees. Non-institutional investors apply above that threshold. Qualified institutional buyers include mutual funds, banks and insurance companies.

A total of 500 crore rupees is reserved for eligible Jio Platforms employees, with a maximum application of 5 lakh rupees. Another 2,500 crore rupees is reserved for eligible Reliance Industries shareholders, with a maximum application of 2 lakh rupees. The eligibility cut-off date for the shareholder quota was Oct. 14, meaning shares purchased on that day would not qualify due to T+1 settlement.

Multiple applications under the same PAN in the same IPO may be treated as duplicates and rejected.

**Market Conditions**

The offering comes amid volatile market conditions marked by persistent foreign investor outflows and geopolitical tensions. Reliance Industries shares have fallen 23% this year amid a broader selloff in local equities.

The coming days will show how preliminary interest translates into actual bids, with anchor allocation on Oct. 19, subscription numbers from Oct. 21, and listing expected approximately one week later.