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Jio Platforms, India's largest telecom operator backed by Meta and Google, is set to raise up to $3.2 billion through its IPO, marking the country's largest rupee-denominated offering. The IPO, priced between 1,065 and 1,119 rupees per share, highlights Jio's dominant market position despite investor skepticism about its valuation.

Meta- and Google-backed Jio Platforms to Raise $3.2 Billion in India's Largest Rupee IPO

Jio Platforms will raise up to $3.2 billion by selling 270 million shares priced between 1,065 and 1,119 rupees each, making it India's largest rupee IPO but second largest in dollar terms. The offering, scheduled for Oct. 21-23, is valued at $108 billion at the upper end of the price range, though this falls short of Bharti Airtel's $117.5 billion market cap. Reliance Industries, Jio's parent company, holds over 66% of the firm, with Meta and Google owning 10% and 7.7% stakes respectively. The IPO's valuation contrasts with investor doubts about Jio's tech-driven ambitions and competitive edge against rivals like Bharti Airtel. Jio's satellite expansion plans, including 1,600 LEO satellites and 23 ground stations, could disrupt India's connectivity market, intensifying competition with global players like Starlink. Analysts warn that Jio's valuation may understate its potential as a tech company, while regulatory scrutiny could arise from its satellite ambitions. The IPO could solidify Jio's position as a leading telecom provider, but its success hinges on whether its satellite network translates into sustained competitive advantage.

Jio Platforms will conduct its IPO from Oct. 21 to Oct. 23. The company plans to launch 1,600 LEO satellites and 23 ground stations for connectivity. Elon Musk accused Reliance Industries' Mukesh Ambani of blocking Starlink's India launch.

Jio's $3.2 billion IPO underscores its market dominance but raises questions about its valuation and tech ambitions. The key uncertainty is whether its satellite expansion plans will provide a lasting competitive edge against rivals like Bharti Airtel.

Topics: Telecom Sector, IPO, Jio Platforms, Meta Investment, Google Stake, India Market, Satellite Expansion, Bharti Airtel, Tech Valuation, LEO Satellites

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Source: CNBC