Ambani's Jio becomes India's second-most valuable firm in US$131.5 billion debut
Shares of Mukesh Ambani's Reliance Jio Platforms surged 21 per cent on its Mumbai debut, making it India's second-largest company by market capitalisation at about US$131.5 billion. The listing, backed by Meta and Google, marks Reliance's first IPO in two decades and solidifies its shift from oil to
Shares of billionaire Mukesh Ambani's Reliance Jio Platforms soared 21 per cent in their Mumbai debut on Wednesday, making it India's second-largest company by market capitalisation, valued at about US$131.5 billion, according to reports.
The listing, the first for the Reliance conglomerate in two decades, furthers Ambani's plan to turn Reliance from an oil-and-chemicals conglomerate into an "everything company" spanning consumer products and technology, sources said.
Jio, whose telecoms business serves more than 530 million customers, is backed by Meta Platforms and Alphabet's Google. Its user numbers are second only to China Mobile on the basis of single-country subscribers.
Jio's stock opened at 1,358 rupees a share, compared with its 1,119-rupee offer price. Its market capitalisation overtook those of telecom firm Bharti Airtel and HDFC Bank, making it the second-largest Indian firm by that metric, reports noted.
"The IPO price offered a valuation entry point; the listing price reflects a much greater degree of optimism," said Aishvarya Dadheech, founder of Fident Asset Management, as cited in the source.
Several brokerages see a potential upside for the Jio stock, but they flagged competition, heavy capital spending and changes in India's telecom rules, including those related to spectrum, licensing and fees, according to the report.
"Jio has had a strong debut even despite geopolitical issues and turbulent market conditions.. the revenues and earnings will lead the stock here onwards," said Kranthi Bathini, equity strategist at WealthMills Securities, as quoted.