Reliance Industries Ltd (RIL), led by Mukesh Ambani, may be preparing to launch the initial public offering (IPO) of its telecom arm, Reliance Jio Infocomm, according to a report by The Hindu Business Line. The offering is estimated to be in the range of ₹35,000-40,000 crore, based on preliminary discussions.
The IPO is expected to consist of a mix of fresh shares and an offer-for-sale (OFS) by existing shareholders, including promoters. There might also be a pre-IPO placement option, where select investors could participate before the public offering. Speculation suggests that the IPO could happen in the second half of the year, potentially making it the largest in India’s stock market history.
Reliance Jio’s valuation is believed to be in the range of $100-120 billion (₹8.5-10 lakh crore). The company is considered a key player in next-generation technologies and retail, which may appeal to investors. Preliminary discussions about the pre-IPO placement have reportedly begun, though details on the proportion of fresh shares versus OFS are still being finalised.
Sources indicate that the issue might find strong demand despite its significant size. Bankers reportedly believe the offering could attract sufficient interest from institutional and retail investors. However, RIL has not officially commented on these developments.
The IPO might provide an opportunity for some existing investors to exit partially or fully. Reliance Jio’s investor base includes prominent global entities like Abu Dhabi Investment Authority (ADIA), Silver Lake, Mubadala, and KKR. These investors acquired stakes when the company raised approximately $18 billion in 2020.
In terms of market performance, Reliance Jio holds a 40% market share in India’s telecom sector, despite losing about 16.5 million subscribers following a tariff hike in July 2024. Analysts suggest the financial impact of this tariff change could become more evident over the next few quarters, particularly as many subscribers are on long-term plans.
If the IPO proceeds as anticipated, it may surpass Hyundai India’s ₹27,870 crore offering from October 2024, becoming the largest in India’s history.
