India’s biggest-ever IPO is scheduled for Oct. 21-23, with Jio Platforms aiming to raise as much as 302 billion rupees at a price band of 1,065 to 1,119 rupees per share. According to a stock exchange filing by Reliance Industries, those terms value the company at about $108 billion.
That is well below the valuations of more than $130 billion that had circulated a year ago. Nomura, citing the offer details, said Jio’s enterprise valuation has fallen to $118 billion from the $133 billion previously expected.
Analysts cited by CNBC said Jio is trying to present itself as more than a telecom operator, arguing it should be seen as a technology company because of its digital services and planned satellite communications launch. Investors, however, appear unconvinced that the higher-style tech positioning is fully justified.
An equity valuation of $108 billion would leave Jio below Bharti Airtel, whose market capitalization currently exceeds $117 billion, according to LSEG data. Nomura also warned that after listing, Jio will need to prove it can keep growing as the period of easy subscriber gains fades and tariff hikes are likely to become the main earnings driver.
Jio Platforms’ IPO documents show monthly ARPU at 214 rupees. Airtel’s comparable figures are 257 rupees for mobile, 527 rupees for home internet and 158 rupees for digital TV services. Neil Shah, a partner at Counterpoint Research, said the IPO proceeds should help Jio pay down telecom debt and free up cash flow for its next growth phase.
The company has also drawn fresh attention after criticism from SpaceX founder Elon Musk, who said last week that Mukesh Ambani-owned Jio was blocking Starlink’s launch in India.
