Will The Jio Platforms IPO Live Up To Its Billing?

SUMMARY

• As Jio Platforms heads to Dalal Street, the key question is whether its digital, broadband and AI bets can deliver meaningful growth beyond telecom connectivity.

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It’s already called the biggest IPO in India, but Reliance Industries Limited is leaving no stone unturned. RIL chairman Mukesh Ambani has reportedly urged all 4.2 Lakh Reliance employees to invest in the IPO, even paying their salaries in advance. 

Whether this is a show of strength or a safety net will only become clear after October 23 when the Jio Platforms IPO closes. RIL employees or not, investors will need to look at what can drive Jio’s growth from here and whether its digital businesses can deliver meaningful returns for those who back its IPO .

The company’s ₹30,213 Cr IPO will open for subscription on October 21 and close on October 23, with a price band of ₹1,065–₹1,119 per share. At the upper end, the issue values Jio Platforms at around ₹10.3 Lakh Cr. The offering comprises a fresh issue of up to 27 Cr equity shares, with the proceeds earmarked primarily for repaying certain borrowings of its material subsidiary, Reliance Jio Infocomm (RJIL). 

The breadth of the company is central to the investment case. Jio has spent years building a nationwide digital infrastructure and a large base of users who consume data, content and connected services.