This article first appeared on GuruFocus.
Jio Platforms, the digital and telecom arm of Reliance Industries, is preparing for a $3.8 billion initial public offering that could value the company at around $137 billion.
Meta Platforms Inc. (META, Financials) owns roughly 9.9% of Jio, while Alphabet holds about 7.7%. That gives both U.S. technology giants a direct financial interest in what could become India’s largest-ever IPO.
Jio plans to issue up to 270 million new shares, with most of the proceeds expected to be used to repay or prepay about $3.3 billion of borrowings at Reliance Jio Infocomm.
The larger investor question is valuation. A public listing would give the market a clearer benchmark for stakes Meta and Alphabet have held for years, potentially making the value of those investments easier to assess.
Jio had more than 533 million subscribers as of June and has expanded beyond telecom into cloud, artificial intelligence and enterprise services.
Meta and Alphabet are expected to retain their holdings through the offering, keeping their exposure to Jio’s next phase of growth.
Investors will now watch the final IPO pricing and whether the proposed $137 billion valuation holds as Jio moves closer to listing.
