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Inside India newsletter: Billionaire Ambani’s mega-IPO faces a valuation reality check amid Musk spat

Thursday 15 October01:30 · 3h agoAI summary
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Mukesh Ambani’s Jio Platforms has trimmed its IPO valuation after investors pushed back on its tech pitch, with the deal due next week. The listing comes as Elon Musk criticises Jio’s satellite ambitions and rivalry with Starlink.

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01Summary

  1. 01Jio Platforms will raise up to 302 billion rupees, or nearly $3.2 billion, in an IPO next week, Reliance Industries said on Wednesday.
  2. 02The offer prices Jio at about $108 billion, down from more than $130 billion floated a year ago and below the $133 billion expected earlier, Nomura said.
  3. 03Jio plans to use the IPO proceeds to repay 275 billion rupees of telecom debt and fund future growth, including green AI infrastructure and a low-earth-orbit satellite network.
  4. 04Jio has over half a million subscribers and reported average revenue per user of 214 rupees per month, below Bharti Airtel’s figures in the filing.
  5. 05Meta and Google still hold stakes of nearly 10% and 8% respectively in Jio, and are not selling in the IPO.

02Why it matters

The valuation reset suggests investors are not yet convinced Jio should be priced like a pure technology company. That matters because the deal is a key test of Ambani’s strategy to turn Reliance’s telecom arm into a higher-value digital and tech business.

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