Jio’s Record $3.2 Billion IPO Puts India’s Market Muscle to the Test

Jio’s Record $3.2 Billion IPO Puts India’s Market Muscle to the Test Good morning... I’m Rajesh Mascarenhas in Mumbai, where traders return from a public holiday to the opening of India’s biggest-ever initial public offering. Billionaire Mukesh Ambani’s Jio Platforms starts taking investor orders today for its $3.2 billion blockbuster share sale, testing appetite at a time when Indian equities have been under pressure. The issue has already drawn $854 million from anchor investors including marquee names such as BlackRock, Fidelity, Capital Group, Allianz, Abu Dhabi Investment Authority, Government of Singapore, and Qatar Investment Authority. The Jio IPO also comes as parent Reliance Industries is getting attention from Washington. US Secretary of State Marco Rubio is due to meet Ambani and his team to discuss whether the firm can refine more Venezuelan crude as the US seeks to boost supplies amid the Iran conflict. Rubio told reporters about the meeting on Tuesday, shortly after arriving in Mumbai for a three-day trip. As for the broader equity market, there are few signs that foreign investors are shifting money into India even as the global AI trade comes under pressure. The earnings season isn’t offering much help either. Results so far haven’t produced many big surprises, and expectations for earnings upgrades remain muted. Eternal, Adani Green Energy and Indian Hotels are among the companies reporting today. Asian shares are up in early Wednesday trading and oil prices are steady. Meanwhile, India’s central bank has reportedly tightened scrutiny of large overseas investments by domestic companies as it seeks to contain capital outflows amid pressure on the rupee. In today’s newsletter, we also write about: