Jio Platforms debut pushes Ambani family to top of Indian conglomerate rankings

Mukesh Ambani now controls the two most valuable companies in India following the stock market debut of Jio Platforms. The telecom and digital services operator saw shares rise 3.3% at the open on Thursday, one day after trading began. This performance places the company alongside major global telecommunications firms in terms of market capitalization.

Jio Platforms listed on Wednesday at a price more than 25% above its initial public offering value. That valuation set the company’s market capitalization at 13.05 trillion rupees, equivalent to $137.1 billion. Reliance Industries, the Ambani family’s flagship entity, retains a majority stake of more than 64% in Jio Platforms after the offering.

The listing has altered the hierarchy of major Indian business groups. According to a Bloomberg report, the Reliance Group’s total market value now stands at 30 trillion rupees. This figure exceeds the 25 trillion rupee valuation of the Tata Group, making the Ambani family business the largest conglomerate in the country.

Akash Ambani, the company’s managing director and eldest son of Mukesh Ambani, outlined long-term growth strategies during Wednesday’s pre-listing events. He stated that Jio plans to expand into artificial intelligence, cloud services, connected devices, and satellite connectivity over the next decade. He described the goal as democratizing technology that can transform Indian lives.

Financial analysts point to improved free cash flow as a primary driver for the stock’s performance. Proceeds from the sale are directed toward repaying legacy telecom debt, and the company’s 5G investment cycle is slowing. Vaqarjaved Khan, a senior analyst at Angel One, noted that Jio serves more than 500 million customers with operating margins of 52%. He cautioned that the current price-to-earnings ratio of 34 indicates much of the company’s quality is already priced in.

Anurag Singh, founder of Ansid Capital, highlighted that Jio cleared nearly 300 billion rupees of debt while diluting ownership by only 3%. He compared the company’s new standing to American peers AT&T and Verizon, which hold market capitalizations of $139 billion and $179 billion, respectively, according to LSEG data.

Elon Musk has criticized Jio’s satellite communications plans. Earlier this month, he attributed delays in launching Starlink in India to the Ambani family. The company’s backers include Meta and Google, and its leadership pledged to create value for investors over the next 50 years during the listing ceremony.