Analysis
At the top of the range, the offering would pass the $2.9 billion raised in a 2024 listing as India's largest and make Jio the country's fourth-most valuable listed company, according to Reuters. It is a test of how much global and domestic investors will pay for India's dominant mobile carrier, and most of the money would go to paying down the telecom unit's debt.
The offering
Jio Platforms set the price band on Wednesday, October 14, according to a company filing reported by Reuters [1]. It plans to sell 270 million new shares, with anchor investors bidding on October 19 and the public offer open from October 21 to October 23 [2].
At the top of the range, the would raise up to $3.2 billion and value the company at as much as $108.3 billion [2]. Jio said it plans to use up to 275 billion rupees, about $2.89 billion, to repay or prepay borrowings at its telecom unit, Reliance Jio Infocomm, and the rest for general corporate purposes [2].
The company
Jio launched in 2016 with free voice and data plans that pulled many Indians online for the first time and hurt rival carriers [2]. Its telecom unit now has 533 million subscribers and carries 60% of India's data traffic, Reuters reported [2]. In 2020 it raised more than $20.5 billion from 13 global investors for about a third of the company, at a valuation of $57 billion to $65 billion [2].
In its updated prospectus, Jio warned that India's data-protection and telecom rules may limit how far it can turn its user base into advertising and digital-services revenue [2].
What remains uncertain
The size and valuation are maximums at the top of the price band; the final price, demand and listing date can change. Figures come from Reuters' reading of the company's filings, converted at 95.15 rupees to the dollar.