Billionaire Mukesh Ambani’s Jio Platforms attracted enough investor bids to fully subscribe its initial public offering within two hours of opening Wednesday, putting India’s likely biggest-ever listing on track.
Jio Platforms, which houses the country’s biggest wireless operator and is the digital services arm of Ambani’s Reliance Industries, is looking to raise up to $3.2 billion in India’s most anticipated IPO this year.
Bids placed by investors exceeded the 197.5 million shares on offer within 100 minutes of opening, according to BSE stock exchange data, with local media calling it the “fastest-ever subscribed IPO” in India.
Most analysts expect gains when the stock debuts in Mumbai next week — likely October 28 — despite the weak performance of Indian equities this year.
Launched a decade ago, Jio’s wireless service disrupted the market with steep discounts that helped it rapidly win customers from rival telecom firms Bharti Airtel and Vodafone.
The company’s 533 million subscribers provide a “strong foundation for future growth”, analysts at financial services firm Motilal Oswal said in a note.
But they also cautioned that “monetisation of newer digital services” still needs to be “demonstrated at scale”.
While the massive IPO is seven years in the making, it comes at a challenging time for Reliance — India’s most valuable listed company, which still depends heavily on its traditional oil business to make money.
