Jio Platforms Ltd., the telecom and digital-services arm of Reliance Industries Ltd., pulled off India’s biggest-ever initial public offering, raising $3.1 billion and closing 27% higher in Mumbai trading. The debut marked the second-best start among large Indian IPOs that raised at least 150 billion rupees ($1.6 billion), trailing only Coal India Ltd.’s 40% listing pop in 2010.
The Ambanis, a dynasty whose wealth and influence are nearly unparalleled in India, pulled out all the stops to make the deal a success. They changed the deal structure, lowered the valuation ask, lined up anchor investors, and tapped their business empire’s vast workforce to drum up interest. The result reflected a familiar pattern: careful preparation, flexibility on price and an ability to complete large deals in difficult markets.
The backdrop makes the deal even more notable. Indian stocks are headed for their first annual drop in 11 years, global funds have pulled record amounts and several of the country’s mega IPOs have stumbled. Reliance spent close to five years readying the IPO and waited until the business was generating strong free cash flow before bringing in public-market investors.
For the Ambani family, the listing was also a personal milestone. Mukesh Ambani appeared emotional at the ceremony, while his elder son Akash led the IPO process. Jio’s first-day rally pushed its market value above $130 billion, making it India’s second-most valuable listed company and the world’s fifth-largest telecom firm by market cap.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing