Jio Platforms IPO: Meta, Google among investors to trim stakes

Jio Platforms IPO: Meta, Google among investors to trim stakes

Jio Platforms is gearing up for a $4 billion initial public offering (IPO), which will see its 14 global investors, including Meta and Google, partially exiting their stakes, according to The Economic Times.

The IPO will be an offer for sale (OFS) with early shareholders looking to reduce their stakes by some 8-8.5%. This will bring their combined holding down to about 30% after the IPO.

Reliance Industries will continue to hold its 67% stake in Jio Platforms post-IPO.

Meta Google to see significant stake reductions

The bulk of the stake sale will be by Meta Platforms, through its entity Jaadhu holdings, and Google.

After the offer, Meta's stake is likely to go down from 9.98% to 9.1%, while Google's stake may be reduced to around 7% from 7.73%.

Other investors like Saudi Arabia's Public Investment Fund, Vista Equity, Omicron Asia Holdings, Silver Lake, General Atlantic ADIA-backed Platinum Jasmine Trust TPG Intel Capital Qualcomm Ventures will also see their stakes reduced proportionately in Jio Platforms post-IPO.

Investment banks have pegged valuation at $133-180 billion

Investment banks have estimated Jio Platforms's post-IPO valuation at $133-180 billion.

In 2020, the company raised over ₹1.5 lakh crore ($20 billion) from 13 global investors in a lightning fundraising round. The deals were among the biggest in Indian corporate history and made Jio Platforms net debt-free.

Since then, it has expanded into 5G, broadband, digital services, and enterprise solutions with a focus on emerging areas like home broadband, enterprise services, AI infrastructure, deep-tech capabilities, and 5G satellite connectivity.

Reliance to invest $110 billion in AI infrastructure

Mukesh Ambani-led Reliance Industries group has pledged to invest $110 billion (₹10 lakh crore) over seven years to build AI infrastructure.

It has also set up a new AI subsidiary, Reliance Intelligence, for its projects with Google and Meta.

Beyond consumer mobility, Jio is looking to monetize its homegrown 5G stack including core network operating software billing systems which could create a new revenue stream as it seeks to export telecom technology possibly through partnerships minority investments in overseas operators.