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Reliance Jio IPO: Mukesh Ambani, the Indian billionaire, is planning to list his telecommunications company Jio on the stock exchange by 2025. Analysts value the company at more than $100 billion, while his retail business IPO is scheduled for a later date, according to a Reuters report.
Despite announcing in 2019 that both Reliance Jio and Reliance Retail would progress toward listing within five years, Ambani has not yet provided updated timelines. As Asia’s wealthiest individual, he successfully secured $25 billion in investments from prominent firms like KKR, General Atlantic, and Abu Dhabi Investment Authority for his digital, telecom, and retail ventures.
Reliance intends to proceed with the Jio IPO in 2025, following the company’s achievement of becoming India’s leading telecom provider with 479 million subscribers. However, the retail division’s public offering is expected to occur after 2025 due to pending operational matters.
The company faces potential competition from Elon Musk’s Starlink service in India. Jio, supported by Google and Meta, has established a partnership with Nvidia for artificial intelligence development.
While specific valuation details and banking partners remain undecided, Jefferies estimated Jio’s IPO value at $112 billion in July. Reliance aims to surpass Hyundai India’s $3.3 billion IPO record in India, though IPO timelines could be subject to change.
The Indian market has shown strong performance, with 270 companies raising $12.58 billion through IPOs by October, surpassing the previous year’s total of $7.42 billion.
Reliance plans to stagger the IPOs of its retail and Jio units to avoid simultaneous large public offerings, two sources familiar with the matter told Reuters.
One source indicated there are “operational issues” within the retail division that Reliance wants to address before pursuing an IPO. The unit operates India’s largest network of 3,000 grocery supermarkets.
The retail business has expanded rapidly across various formats, including online sales. However, some physical stores have experienced losses over time, resulting in suboptimal revenue per square foot of retail space.
The retail division encompasses fashion, grocery, and electronics stores, and has expanded into e-commerce to compete with Amazon. The company is currently focusing on rapid delivery services to capitalize on the emerging quick commerce sector, offering 10-minute deliveries.
The company recorded its first quarterly revenue decline in at least three years during July-September, showing a 1.1% decrease year-over-year. This decline is attributed to increasing competition from quick commerce competitors affecting supermarket sales.
Bernstein analysts valued the business at $112 billion last year. The company owns Hamleys and maintains partnerships with premium brands like Jimmy Choo, Marks & Spencer, and Pret A Manger in India.
Foreign investors own 33% of Jio Platforms, which manages telecom and digital operations, after investing $17.84 billion. Similarly, Reliance Retail has sold approximately 12% stake to international investors, raising $7.44 billion during the same period.
