Reliance Jio Platforms plans 2.5% IPO this year, could be biggest ever in India

Reliance Jio Platforms is planning to sell 2.5% of its shares through an upcoming initial public offering (IPO) this year. According to a report, this could become India’s largest-ever IPO, raising more than $4 billion.

In November, investment bank Jefferies estimated Jio’s valuation at $180 billion. At this valuation, selling a 2.5% stake would raise about $4.5 billion. This would be bigger than Hyundai Motor India’s $3.3 billion IPO in 2024.

The report, quoting sources, said the company prefers to list only 2.5% of its shares because of Jio’s large size. Currently, Indian rules require companies to sell at least 5% in an IPO, but a proposal to reduce this limit to 2.5% for large companies is still waiting for approval from the finance ministry.

As per the report, one source said Reliance would prefer to list 2.5% if the rules are changed, as a smaller share sale could help create better pricing. Some bankers are suggesting a valuation between $200 billion and $240 billion, but Reliance has not yet decided on a final valuation.

Reliance Jio Platforms, owned by Mukesh Ambani, has over 500 million users and holds a 41.41% share of India’s wireless subscriber market. Over the past six years, Jio has expanded into areas like artificial intelligence and has raised funds from global investors such as KKR, General Atlantic, Silver Lake, and the Abu Dhabi Investment Authority.

When contacted, the company declined to comment on the IPO plans.

It is still unclear whether the IPO will be an offer-for-sale, where existing shareholders sell their shares, or a fresh issue of new shares.

The report also noted that in 2019, Mukesh Ambani had said Jio would be listed within five years. This year, Jio is also expected to face competition from Elon Musk’s Starlink, which may launch its internet services in India in the coming months.

Although formal appointments have not yet been made, bankers from Morgan Stanley and Kotak are already working with Reliance on preparing the IPO documents, which is usually a lengthy process.