Will SpaceX's $75 billion IPO set the ball rolling for Reliance Jio and NSE listings in India?
SpaceX's $75 billion IPO has grabbed global attention, becoming the largest initial share sale in history and pushing Elon Musk's company into the ranks of
SpaceX's $75 billion IPO has grabbed global attention, becoming the largest initial share sale in history and pushing Elon Musk's company into the ranks of the world's most valuable listed firms. The blockbuster debut has also meant that it could encourage India's own mega IPO candidates, including Jio Platforms and the NSE, although the path, according to investment bankers, is not straightforward.While SpaceX has demonstrated that investor appetite for large growth stories remains intact, bankers that the timing of Jio and NSE's public offerings will be determined largely by domestic market conditions rather than developments in the United States."The outcome of the SpaceX IPO is unlikely to bear significant influence on Indian companies looking to list," said Yatin Singh, CEO-Investment Banking at Emkay Global Financial Services. "SpaceX is an AI play. It, along with the upcoming IPOs of OpenAI and Anthropic, is poised to benefit from the massive crowding-in of investor interest in the AI theme."According to Singh, the comparison between SpaceX and India's prospective mega listings is limited because they represent very different investment propositions."Jio and NSE, though unique assets in the Indian context, aren't really linked to the AI theme.
Their IPO launch timing will depend on the state of Indian markets more than anything else," he said.He added that easing geopolitical concerns could improve the backdrop for large offerings. "With a US-Iran ceasefire on the anvil, these IPOs could see the light of the day soon."Another senior investment banker said the listing decisions for both companies would be driven primarily by secondary market sentiment and timing considerations."The IPOs of Jio and NSE are completely dependent on secondary market conditions in India. Timing will be at the time of their choosing, when they think the noise is less," the banker said.Jio Platforms, the digital arm of Mukesh Ambani-led Reliance Industries, is expected to be one of the largest IPO candidates in India's history. The company has recently overhauled its listing plans. Earlier this year, The Economic Times reported that Reliance had decided to move away from an offer-for-sale structure in favour of a predominantly fresh issue after discussions with existing investors over valuation.Under the revised approach, proceeds would flow into Jio itself rather than existing shareholders exiting through the IPO. The move is also intended to avoid excessive valuation expectations and create room for post-listing appreciation.According to Bloomberg, Reliance has slowed some preparations as it reviews the structure of the transaction amid geopolitical uncertainty and market volatility.
The BriefWire