Update On Reliance Retail, Jio IPO At The Next AGM: Mukesh Ambani

Amid reports that Reliance Industries Limited (RIL) is looking to list Jio and Reliance Retail on the bourses by year-end, the conglomerate’s chairman and managing director Mukesh Ambani on Monday (August 29) said that he will share an update on their initial public offering (IPO) at the next annual general meeting (AGM).

Ambani made the comments while addressing the company’s 45th AGM virtually. 

“I will take up your inputs with our board of directors on the question on IPO for Jio and Retail. The principles on timing and valuation of IPOs remain unchanged. I have outlined the plans for both businesses,” Ambani said.

He added, “Jio is embarking on an aggressive launch of our 5G service and retail is on a path of exponential growth..I will update you on the IPO in my speech next year.”

The comments come amidst reports that the two companies are planning to raise $6.5 Bn to $10 Bn via the listing, assuming a dilution of at least 10% of the holdings by the promoters. It all began in January when brokerage firm CLSA said that Jio was mulling to go for an IPO this year itself, pegging the telco at a valuation of $99 Bn.

Reliance Retail is the retail subsidiary of the oil-to-telecom conglomerate and houses brands such as Ajio, JioMart, Trends, among others. Reliance Retails sells items from electronics to apparels and from grocery to footwear.

On the other hand, Jio is the country’s largest telecom operator in terms of subscribers, competing with Bharti Airtel and Vodafone Idea (Vi). 

Road To 5G Network

At the event, Jio Chairman Akash Ambani also unveiled the company’s new offering – Jio AirFiber – a plug-and-play device (a hotspot) that will allow users to connect to the internet at gigabit speeds.

Essentially, Jio AirFiber operates on radio-based solutions and deploys 5G to get high speeds wirelessly without the need for wires. 

Meanwhile, on the 5G services, Mukesh Ambani said, “Jio will deploy the latest version of 5G, called Stand-Alone 5G, which has zero dependencies on our 4G network.” 

The CMD also said that Jio will launch 5G services in the major cities of the country, including Delhi, Mumbai, Chennai and Kolkata, by Diwali.

In addition, Jio plans to ‘reach every town in the country’ by December 2023 and has earmarked INR 2 Lakh Cr towards deployment of 5G services in the country.

Mukesh Ambani added that Jio has further consolidated its position as India’s number one digital service provider over the past one year.

He also announced a partnership with original equipment manufacturer (OEM) Qualcomm. The US-based company joins the likes of Ericsson, Cisco, Nokia and Samsung to deploy 5G networks across the country. 

Mukesh Ambani also hinted at his succession planning. While Akash and Isha have assumed leadership roles in Jio and Retail, respectively, his younger son Anant has joined RIL’s new energy business, the 65-year-old billionaire said.