Jio Platforms IPO: A New Era for Indian Telecom
With customers paying ₹214 a month on average, Jio garners $15 billion in operational revenue at a 52% Ebitda margin. Street estimates for its worth are clustered around $130 billion. But realizing a market price that validates that figure is tricky, given that Jio is basically an emerging-market story and global investors have lately been pulling money out of this asset class.
SpaceX IPO: A Boost for Jio Platforms?
Insatiable investor demand for Elon Musk’s SpaceX will be music to the ears of Mukesh Ambani. With global institutions writing $10 billion cheques for Musk’s rockets and satellites, it’s clear there is no dearth of demand for mega-tech; or for tech-adjacent businesses like the Reliance chief’s data carriage, e-commerce and media play. To know more about SpaceX IPO, click here.
Jio’s Silicon Valley Backers
Jio’s big Silicon Valley backers such as Google and Meta came in during the 2020 pandemic when digitization was the craze. Six years later, their attention—and that of global hot money—is fixated on AI. Ambani’s ambition of providing low-cost AI products to enterprises and consumers via a partnership with Meta may well become a future revenue source for Jio. To learn more about Artificial Intelligence in India, click here.
RBI’s Dollar-Luring Measures
The Reserve Bank of India has announced it would absorb the hedging costs for banks raising deposits from the Indian diaspora. If, say, $50 billion rushes inward through this channel, it will inject rupee liquidity into the banking system. To understand the impact of RBI Monetary Policy on the Indian economy, click here.
Cautions and Concerns
Former Credit Suisse analyst Ashish Gupta urges extreme caution, reminding us that massive, record-breaking IPOs have historically presaged market tops. To know more about Indian IPO Market, click here.