Jio IPO Filing Expected as India’s Largest Share Sale Nears

Jio Platforms is expected to file its red herring prospectus with India’s market regulator on Wednesday for an IPO that could raise about Rs 30,000 crore, according to people familiar with the matter. The subscription window is expected to run from October 21 to 23.

The proposed sale would surpass Hyundai Motor India’s Rs 27,800 crore IPO in 2024, making it India’s largest-ever share offering. Jio is part of Reliance Industries, led by Mukesh Ambani.

Issue structure

The IPO is expected to consist only of new shares, with no offer for sale by existing investors. Jio’s backers, including Meta Platforms, Google, Saudi Arabia’s Public Investment Fund and KKR, are not looking to exit through the offering, according to people familiar with the matter.

Some existing investors are instead seeking to increase their stakes, those people said. Jio is also focusing on retail participation and plans to set a price that leaves some value for investors, according to the report.

Valuation estimates

Market estimates put Jio’s potential valuation as high as Rs 10.3 lakh crore, with a likely price band of Rs 1,065 to Rs 1,119 per share. At the upper end, the IPO could raise about Rs 30,200 crore. The final terms will be known after the prospectus is filed.

Nomura’s analysis of the reported price range estimates Jio’s equity value at Rs 9.8 lakh crore to Rs 10.3 lakh crore. The brokerage estimates a valuation of 10.5 to 10.9 times FY28 enterprise value to EBITDA at the proposed price band. Motilal Oswal’s analysis puts the multiple at about 12 times, based on a potential Rs 11 lakh crore market capitalisation.

Reports cited by the Economic Times said the IPO had drawn more than $20 billion in bids from prospective investors. The article also reported interest from international and domestic institutions.

Reliance’s stake

Reliance is expected to retain about 66.4% of Jio after the IPO. Nomura estimates that the stake could be worth Rs 481 to Rs 506 per Reliance share based on Jio’s proposed valuation, before applying a holding-company discount.

The listing would give Jio an independently quoted market value. Religare described it as a potential catalyst for narrowing the discount applied to Reliance, while Motilal Oswal said it could unlock value in the parent company.