Billionaire Mukesh Ambani's Jio Platforms drew notable investor interest on Wednesday, being able to fully subscribe to its initial public offering (IPO) within two hours of opening, setting the stage for what is likely to be India's largest-ever listing.
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 Oct. 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.
U.S. ties
Reliance's refining empire drew the anger of the U.S. last year after White House adviser Peter Navarro accused Indian tycoons of profiting off the Ukraine war by buying discounted Russian crude.
While Navarro did not identify a specific businessperson, it was widely seen as a swipe at Ambani, who appeared this year to offer an olive branch by supporting the construction of America's first major new oil refinery in half a century.
Ambani was set to meet U.S. Secretary of State Marco Rubio on Wednesday in the western city of Jamnagar – where Reliance's massive refinery complex is located – as Washington seeks to boost energy cooperation with India.
Experts say Jio is key to Reliance's strategy to evolve beyond its oil business and the touchstone of its future tech ambitions.
While Jio makes most of its money from telecoms, it has expanded into areas including artificial intelligence.
Reports also said it was considering a low-orbit satellite constellation to provide internet services from space, a venture that would put it in competition with Musk's Starlink, which has been trying for years to launch in India.
Musk accused unnamed Indian "oligarchs" this month of preventing Starlink's rollout in the country, and referred to the Reliance boss as "Prime Minister Ambani" and the "real boss of India."
Reliance responded by noting that it had never "feared competition" and welcomed offerings from rivals in satellite communications, including Starlink.