A decade after storming into the Indian telecom market with free calls and cheap data that decimated its rivals, the company is aiming for a historic milestone with the IPO.
But unlike in the triumphant fall of 2016, when its aggressive strategy stoked a price war that left only a single competitor profitable, Ambani’s upstart is coming to the market more cautious and humble. the owner of India’s largest wireless operator, is seeking a valuation that’s roughly 10% lower than its nearest sector rival, Bharti Airtel Ltd.
The listing marks billionaire Ambani’s return to the capital market after 20 years, an offering that he said will “unlock great value” for parent Reliance Industries Ltd. But a closer look paints a more sobering picture. Reliance shares are on track for their worst annual performance since 2011 and the energy-to-entertainment conglomerate had to prune Jio’s valuations to attract marquee investors.
Jio’s IPO opened its books for retail investors on Wednesday, for a subscription period that ends Oct. 23. Anchor investors including BlackRock Inc., Fidelity Management & Research, Capital Group and Allianz SE took stakes worth a combined $854 million at the top end of the marketed range.
Jio’s $3.1 billion share sale values the company at $107 billion at the top end of the marketed price range of 1,065 rupees to 1,119 rupees apiece, compared with about $123 billion for billionaire Sunil Bharti Mittal’s wireless operator.