- Jio drew ₹7.4 lakh crore in bids for a ₹30,213 crore IPO, subscribed 22.19 times.
- Jio’s ₹7.4 lakh crore demand tops Reliance Power’s ₹7.12 lakh crore in a ranking.
- Up to ₹27,500 crore, or 91% of Jio’s IPO proceeds, will repay creditors.
India’s largest IPO has drawn record demand, but the 22.19 times oversubscription is only part of the story. Nearly all of what Jio Platforms raises will go to creditors, not to new projects.
Jio is raising about ₹30,213 crore, while investors bid for roughly ₹7.4 lakh crore, including the anchor book. Qualified institutional buyers bid 70.55 times their quota, non-institutional investors 14 times, and retail investors nearly three times. The issue drew more than 1.25 crore applications, the first IPO worldwide to cross one crore.
Prime Database’s ranking of India’s most-sought-after IPOs by demand shows:
- Jio Platforms: ₹7.40 lakh crore (tentative)
- Reliance Power: ₹7.12 lakh crore
- LG Electronics India: ₹4.41 lakh crore
- Bajaj Housing Finance: ₹3.25 lakh crore
- ICICI Prudential AMC: ₹2.99 lakh crore
- SBI Funds Management: ₹2.99 lakh crore
Where the Money Goes
Up to ₹27,500 crore of the proceeds, about 91% of the issuance, is earmarked for repaying or prepaying borrowings at Reliance Jio Infocomm. The offer is entirely fresh shares. Reliance Industries and early backers such as Meta, Google and KKR are not selling any stake.
The question for investors is whether they are paying for a future in AI, cloud and digital services or rewarding a company that is cleaning up its balance sheet.
Follow us on X for real-time crypto updates.
Case for Both
The two aims could however overlap. Cutting debt lowers interest costs, which lifts earnings and return on equity and frees cash flow to fund 5G, cloud, and AI spending internally. Because there is no sale by existing holders, every rupee stays in the company.
Reports put Jio’s valuation at about $108 billion, or roughly 33 times fiscal 2026 earnings. That is a premium to what is typically paid for a mature telecom operator, which suggests buyers expect growth beyond phone and data plans.
Jio has more than 530 million subscribers and about ₹1.47 lakh crore in fiscal 2026 revenue, and management has pointed to enterprise services, home broadband, AI cloud, and consumer apps as the next growth drivers.
The Balancing Act
The IPO proceeds themselves are not funding that expansion, since most of the money goes to lenders. The growth story will have to be paid for from future cash flow. About 90% of Jio’s revenue still comes from telecom, and investors will watch whether the company can raise earnings beyond tariff increases, at a time when AI valuations face scrutiny worldwide.
What Comes Next
The price band is ₹1,065 to ₹1,119 a share, with allotment expected on October 26 and listing on October 28 on the BSE and NSE. Unofficial grey market quotes on Friday morning pointed to a premium of ₹254, implying a listing price near ₹1,373, about 22.7% above the top of the band. Those quotes carry no guarantee.
Jio’s IPO demand highlights strong investor interest, but its long-term value will depend on whether debt reduction translates into stronger earnings and sustainable growth beyond telecom. With most proceeds earmarked for creditors, investors will look to future cash flows and expansion in AI, cloud, and digital services to justify the company’s valuation.
Subscribe to our YouTube channel for the latest crypto news.
Related: Bitget Lists Jio Pre-IPO Futures With 20x Leverage Ahead of IPO
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
