Jio Platforms Valued at $137 Billion After Market Debut

Mukesh Ambani now owns the two most valuable companies in India following the stock market debut of Jio Platforms on Wednesday. The company, which provides telecom and digital services, began trading at a premium of more than 25 percent above its initial public offering price. By the open on Thursday, shares had risen an additional 3.3 percent, establishing a market capitalization of 13.05 trillion rupees, equivalent to $137.1 billion.

Reliance Industries, Ambani's flagship company, retains a stake of more than 64 percent in Jio Platforms after the offering. This structure places control of both major entities under Ambani's leadership. The listing also shifted the ranking of Indian conglomerates, with the Reliance Group's total market value reaching 30 trillion rupees. That figure exceeds the 25 trillion rupee valuation of the Tata Group, making the Ambani family business the largest conglomerate in the country.

Before the shares began trading, Ambani was visibly emotional as his three children recounted the history of building Jio. They pledged to generate value for investors over the next 50 years. Akash Ambani, the 35-year-old eldest son and managing director of Jio Platforms, outlined growth plans for the next decade. He stated that the company aims to democratize technology that can transform Indian lives, citing artificial intelligence, cloud computing, connected devices, and satellite connectivity as key areas.

Analysts point to improved free cash flow as a major driver of the stock's performance. Proceeds from the IPO will be used to repay legacy telecom debt, and the company's spending on 5G infrastructure is slowing. Anurag Singh, founder of Ansid Capital, noted that Jio cleared nearly 300 billion rupees of debt with only 3 percent share dilution. He compared the company's valuation to American telecom giants AT&T and Verizon Communications, which are valued at $139 billion and $179 billion, respectively, according to LSEG data.

Vaqarjaved Khan, a senior analyst at Angel One, highlighted the company's scale and financial metrics. He cited a customer base exceeding half a billion people, operating margins of 52 percent, and net leverage of 0.36 times. However, Khan warned that the current price-to-earnings ratio of 34 times reflects much of the company's quality. Future returns will depend on increases in average revenue per user and the success of AI services.

The listing has drawn attention to Jio's plans for satellite communications. Elon Musk criticized the Ambanis earlier this month, blaming them for delays in launching Starlink in India. Despite this external friction, the stock's strong debut has cemented Jio's position as a major player in the global telecom sector.