Reliance to launch Jio's IPO in 2025, retail business to list later

Billionaire Mukesh Ambani is gearing up for an initial public offering (IPO) of his telecom arm, Reliance Jio, targeting 2025 for the launch, with plans to bring Reliance Retail to the public market at a later date. This strategy, as per reports, could set a record for India’s largest IPO, potentially eclipsing Hyundai India's recent $3.3 billion offering.

Reliance Jio, valued by analysts at over $100 billion, has emerged as India’s top telecom provider, amassing around 479 million subscribers. While no final valuation for the IPO has been disclosed, brokerage firm Jefferies reportedly estimated Jio’s worth at approximately $112 billion as of July.

This move comes as Reliance Jio braces for competition from Elon Musk's Starlink, should the satellite internet service enter the Indian market. The planned IPO also follows Ambani’s successful fundraising campaigns, which drew a collective $25 billion for his telecom, digital, and retail enterprises, with investments from major players like KKR, General Atlantic, and Abu Dhabi Investment Authority. Currently, foreign investors hold a 33% stake in Jio Platforms after contributing nearly $18 billion over recent years.

Reliance Retail, which operates India’s largest supermarket network with over 3,000 stores, is expected to go public post-2025. This delay is reportedly due to "operational issues" within the retail division, which Reliance aims to resolve first. The company has expanded rapidly, venturing into e-commerce to challenge Amazon and into quick-commerce with 10-minute delivery services. This swift growth has impacted some of its physical stores, contributing to a 1.1% dip in quarterly sales from July to September, despite Bernstein’s valuation of Reliance Retail at $112 billion last year.

India's IPO market is already booming, with 270 companies raising $12.58 billion by October 2023, marking a significant rise from the $7.42 billion total in 2022. In light of this, Reliance appears to be spacing out its offerings to avoid overwhelming the market with two major IPOs in close succession.