- Jio Platforms has shortlisted Morgan Stanley and Goldman Sachs as lead advisers for an IPO targeted for the first half of 2026.
- The IPO may sell about 2.5% of shares and raise roughly US$4–6 billion, contingent on SEBI/government approval to lower minimum public float rules for mega-caps.
- Valuation expectations are wide at about US$133–182 billion (with some estimates near US$170–180 billion).
- Google and Meta are expected to hold their stakes, while private equity investors and possibly Intel may sell portions in the offering.
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The selection of Morgan Stanley and Goldman Sachs as lead advisers marks a decisive advancement for Jio Platforms’ IPO preparations, underscoring the scale, complexity, and global ambition of the listing. These banks bring substantial international underwriting experience, which will be necessary given the expected valuation and involvement of global institutional investors.
Central to the IPO’s structure and investor appeal will be the dilution rate. Jio is aiming to offer just around 2.5% of its shares in the IPO—well below traditional minimum thresholds—contingent upon SEBI’s and the government’s approval of revised IPO norms for mega-cap companies. If approved, this lower dilution could heighten pricing leverage for the sellers but also limit public float and retail participation.
Valuation estimates for Jio Platforms are diverging significantly: lower-end estimates put it at ~US$133 billion, while higher-end figures reach up towards US$180 billion. The variance reflects different assessments of Jio’s growth prospects, including scale in broadband, 5G, AI, digital platforms, and the regulatory environment. At the filtered valuation range, even a 2.5% stake sale translates into a massive capital raise, which will be among India’s largest IPOs.
The participation and exit intentions of existing investors are critical. Strategic investors such as Google (approx. 7.7–7.75%) and Meta (9.9%) appear set to retain their positions. Private equity backers—KKR, TPG, Silver Lake, Vista, etc.—are expected to sell some shares in the IPO, while Intel (≈0.7%) may also partially exit. This dynamic suggests a blended offering that includes both primary issuance and secondary sales, increasing liquidity without expanding share count markedly.
Regulatory developments are a gating factor. SEBI has proposed reducing the minimum IPO float for very large companies to ~2.5%, from ~5%, for those with post-issue market capitalisation exceeding ₹5 lakh crore. However, the change is yet to be notified, pending finance ministry approval. Clarity on these rules will influence final structure, timing (estimated DRHP filing in 2–3 months), and pricing.
Strategic implications beyond the IPO include strengthening Jio’s positioning in AI and digital platforms, unlocking value for RIL shareholders, and offering global investors a rare access point into one of India’s fastest-growing tech ecosystems. However, open questions persist around pricing vs. valuation expectations, potential oversupply or market jitters at such high valuations, and the geographic diversity of allocation, especially if the public float remains minimal.
Supporting Notes
- Jio Platforms has shortlisted Morgan Stanley and Goldman Sachs to lead its IPO.
- The offering is expected to dilute ~2.5% of shares, subject to approval of SEBI’s proposed norms.
- Estimated proceeds from the IPO are around US$4–6 billion.
- Valuation estimates vary—some banks value Jio at US$133–182 billion; others suggest valuations up to ~US$170–180 billion.
- Strategic investors Google and Meta are set to retain their stakes; PE backers will get partial exits; Intel (approx 0.7%) may sell partly.
- The DRHP (draft red herring prospectus) is to be filed in the next 2–3 months, pending clarity on new rules.
- The timeline is first half of 2026, in line with Mukesh Ambani’s earlier announcement and dependent on regulatory approvals.