Reliance Industries is expected to launch the initial public offering (IPO) for its telecom arm, Jio, in 2025, while the IPO for its retail segment may be postponed to a later date, according to media reports. Reliance has not officially announced any dates for the Jio IPO. In 2019, Mukesh Ambani announced that Reliance Jio and Reliance Retail planned to go public within five years, but there has been no update on that timeline since.
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Jio IPO Targeted for 2025
"Mukesh Ambani targets a 2025 Mumbai listing for his telecom business, Jio, valued by analysts at over USD 100 billion, and plans to launch his retail unit's IPO much later," Reuters reported, quoting two sources familiar with the matter.
Current Financial Performance of Jio
"The two sources said Reliance has now firmed up plans to launch the Reliance Jio IPO in 2025, as it believes it has achieved a stable business and revenue stream, becoming India's number one telecom player with 479 million subscribers. However, the retail business IPO is not expected until after 2025, as the company first needs to address some internal business and operational challenges," the report further stated.
Jio's average revenue per user (ARPU) during the September quarter increased to Rs 195.1, following the partial implementation of the tariff hike and a better subscriber mix. The company said the full impact of the tariff hike will be felt in the next two to three quarters.
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Valuation and Market Aspirations
According to sources, no internal decision has been made regarding the valuation of Reliance Jio, and bankers have not yet been appointed. However, Jefferies estimated the company's IPO valuation at USD 112 billion in July, the report further noted.
Reliance aims for the 2025 Jio IPO to be India's biggest ever, surpassing Hyundai India's record USD 3.3 billion IPO this year, according to the first source, the report said.
Sources indicated that Reliance is currently considering not listing its retail unit in the same year as Jio, as it aims to avoid launching two major IPOs simultaneously.
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Jio Platforms
Jio Platforms, which houses the telecom and digital businesses, is 33 percent owned by foreign investors after raising USD 17.84 billion in recent years. Reliance Retail sold around a 12 percent stake to foreign investors over the same period, raising USD 7.44 billion, according to the report.
