Reliance Jio Eyes Mega $100 Billion IPO By 2025; Retail Business Debut Delayed: Report

Jio IPO: Reliance Industries has not revised its IPO timeline since Ambani initially hinted in 2019 that both Jio and Reliance Retail could pursue listings within five years

Jio Platforms has sold a 33 per cent stake to foreign investors, raising $17.84 billion, while Reliance Retail has sold a 12 per cent stake for $7.44 billion.

Source : PTI

Jio IPO: Mukesh Ambani, chairman of Reliance Industries, is eyeing a 2025 IPO for his telecom giant Jio, which analysts have valued at over $100 billion, while planning a later public offering for Reliance Retail, sources close to the matter told news agency Reuters.

Reliance Industries has not revised its IPO timeline since Ambani initially hinted in 2019 that both Jio and Reliance Retail could pursue listings within five years. In the interim, Ambani has raised a combined $25 billion for his digital, telecom, and retail ventures through investments from entities including KKR, General Atlantic, and the Abu Dhabi Investment Authority, positioning both Jio and Reliance Retail with valuations exceeding $100 billion.

The sources noted that Reliance has solidified its IPO plans for Reliance Jio, set for 2025, as the company now sees Jio as a mature entity with a steady revenue stream. Jio has cemented itself as India’s leading telecom operator, boasting 479 million subscribers.

In contrast, Reliance Retail’s IPO may not come until after 2025, as the conglomerate seeks to address operational issues within the retail arm, said one source. The retail division oversees India’s largest grocery store network, with 3,000 supermarkets, but internal challenges have led to inconsistent earnings per square foot, affecting profitability in some locations.

When approached, Reliance Industries declined to comment on the IPO timelines.

The upcoming Jio IPO could potentially set a new record in India, surpassing Hyundai India’s $3.3 billion debut earlier this year. While no internal valuation has been finalised and no bankers have been appointed, Jefferies estimated Jio’s valuation at $112 billion as of July.

Reliance is unlikely to list both Jio and Reliance Retail in the same year to avoid over-saturating the market, according to the sources. Additionally, the retail division has been undergoing rapid expansion in recent years, venturing into various formats including e-commerce and quick commerce, where products are delivered in under 10 minutes. The business recently reported a 1.1 per cent dip in quarterly sales, marking its first decline in three years, largely attributed to competition from quick commerce start-ups.

Reliance Retail’s vast empire includes grocery, fashion, and electronics stores, along with e-commerce operations designed to compete with Amazon. In recent years, it has acquired brands like Hamleys and formed partnerships with international names including Jimmy Choo, Marks & Spencer, and Pret A Manger. Bernstein last year valued the retail unit at $112 billion.

Jio Platforms, which houses Reliance's telecom and digital businesses, has sold a 33 per cent stake to foreign investors, raising $17.84 billion, while Reliance Retail has sold a 12 per cent stake for $7.44 billion.

Stock markets in India have recently reached record highs, with 270 companies raising $12.58 billion in 2024 alone, surpassing the $7.42 billion raised in 2023. If Ambani’s plans hold, the Jio IPO could mark a historic milestone in Indian capital markets.