Jio Platforms IPO Hits Turbulence As Iran War Weighs On Indian Markets

Reliance Industries has slowed preparations for the initial public offering of Jio Platforms, potentially India's largest-ever share sale, as the Iran war disrupts Indian equity markets and complicates the deal's valuation.

The company still intends to file draft prospectus paperwork and could do so at any time, the people said. No firm date has been set.

What Is Holding It Back

The Middle East conflict has hit the deal from multiple directions. Indian stocks have fallen sharply, foreign capital has been exiting the market and some of Jio's key shareholders have slowed their own decision-making amid the geopolitical uncertainty.

The central problem is valuation. A market downturn makes it harder to price the offering at a level that satisfies existing investors while still leaving room for post-listing gains, a balance that is straightforward in rising markets and considerably harder in falling ones.

Pricing also risks putting Jio below the market valuation of listed rival Bharti Airtel, an outcome that would undermine the deal's commercial logic.

What The Deal Is Worth

The offering could raise up to $4 billion, which would make it the largest initial public offering in Indian history, topping Hyundai Motor India's $3.3 billion raise. Indian listings in 2026 have raised roughly $3.5 billion in total so far, and a Jio deal of that scale would represent a significant boost for a market that has struggled this year.

It would also mark the first public offering by a major Reliance unit in nearly two decades.

Who Is Watching

Jio's investor roster includes Meta, Google, Saudi Arabia's Public Investment Fund, Mubadala, Abu Dhabi Investment Authority, Silver Lake, KKR, Vista Equity Partners and General Atlantic, all of which participated in the company's 2020 fundraising rounds that raised over $20 billion. A listing at compressed valuations would reduce returns for investors who backed the company at higher implied valuations.

India's macro backdrop adds further pressure. Elevated import costs from high crude prices are straining the current account, the rupee has weakened and Prime Minister Narendra Modi has urged citizens to cut fuel consumption and limit foreign travel as the government works to protect foreign exchange reserves.

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Bank of America, Citigroup, Goldman Sachs and Morgan Stanley are advising on the deal alongside domestic banks JM Financial and Kotak Mahindra Capital. Reliance Industries did not respond to a request for comment.

Source:

Economic Times