Reliance Eyes $6 Bn IPO For Jio Infocomm

SUMMARY

RIL has now reportedly initiated discussions with markets regulator SEBI for a $6 Bn IPO

It has engaged SEBI in informal talks to seek approval for selling a 5% stake in the telecom major for the IPO

If it materialises, Jio’s IPO would be the largest, going past Hyundai Motor India's $3.3 Bn public issue last year

Adding on to what seems to be a perennial discussion about the IPO of India’s leading telecom provider Reliance Jio Infocomm, its parent Reliance Industries Ltd (RIL) has now reportedly initiated discussions with markets regulator SEBI for a $6 Bn (INR 52,465 Cr) IPO.

As per a report by Bloomberg, RIL has engaged SEBI in informal talks to seek approval for selling a 5% stake in the telecom major for the IPO.

It is pertinent to mention that the 5% float is significantly lower than the standard 25% minimum public shareholding mandated by Indian regulations. This, the report added, is because the company believes that the Indian market does not have the depth to absorb such a large listing.

If it materialises, Jio’s IPO would be the largest, going past Hyundai Motor India’s $3.3 Bn public issue last year.

While the Bloomberg report didn’t mention the timeline for the IPO, a report earlier this year said that Jio Infocomm has decided not to proceed with its public listing plans this year and there is no official timeline now.

Speculations over Jio’s IPO have been rife for more than five years now. The reason behind this is that in 2019, RIL chief Mukesh Ambani said that Jio as well as Reliance Retail will move towards listings within five years.

Throughout 2023 and early 2024, reports continued to emerge about the impending Jio IPO. Analysts and media outlets frequently discussed potential valuations, which often exceeded $100 Bn.

Inc42 has sent out a detailed questionnaire to Jio about its IPO plans. The story will be updated on receiving a response.

On the financial front, Jio Platforms, RIL’s technology arm which houses the telecom major, saw its net profit jump 25% YoY to INR 7,110 Cr in Q1 FY26. Its top line zoomed 19% YoY to INR 35,032 Cr during the quarter.

At the end of the quarter, Jio’s net subscriber base stood close to 49.8 Cr, making it the world’s largest mobile operator in terms of data traffic.

While RIL is looking for Jio’s IPO, it demerged its financial services business, Reliance Strategic Investments Limited, in 2023. The company is now listed on the exchanges as Jio Financial Services.