Reliance Jio Platforms, the telecom behemoth led by Mukesh Ambani, has reportedly delayed its highly anticipated initial public offering (IPO), suggesting that a 2025 listing is unlikely. This decision comes as the company focuses on strengthening its financial performance and expanding its reach in the rapidly evolving digital landscape.
Sources familiar with the matter indicate that Reliance Jio is prioritizing revenue growth and subscriber base expansion before venturing into the public market. The company aims to further mature its business and solidify its position as a comprehensive digital powerhouse, rather than just a telecom leader. As of now, no bankers have been appointed to manage the share sale.
Analysts have valued Jio at over $100 billion, with some reports suggesting an IPO valuation of $112 billion. The telecom arm, Reliance Jio Infocomm, currently contributes nearly 80% of Jio's $17.6 billion annual revenue, making it India's largest telecom operator. However, the company is making significant strides in diversifying its offerings, with a strong push into digital sectors such as app development, AI solutions, and connected devices. This strategic shift aims to enhance Jio's overall valuation and attract a broader range of investors.
The IPO delay also coincides with Jio's preparations to compete with Elon Musk's Starlink, which is expected to launch in India soon. Backed by global giants like Google and Meta, and collaborating with Nvidia on AI infrastructure, Jio is positioning itself as a major player in the digital arena. This move is expected to not only boost its valuation but also showcase its potential to investors.
While the IPO of Jio Platforms is being delayed, the IPO for Reliance Retail is expected to take even longer, potentially occurring after 2025. The company intends to resolve certain internal operational matters within its retail segment before proceeding with the public offering. Reliance Retail operates India's largest grocery network, comprising 3,000 supermarkets, and has recently expanded into e-commerce to compete with major players like Amazon.
The Indian IPO market has been experiencing a significant upswing, with numerous companies raising substantial capital. This positive trend underscores the potential for Jio's IPO to be one of the largest in Indian history. Reliance aims for Jio’s IPO to become the largest in Indian history, overtaking Hyundai's $3.3 billion IPO from this year.
In 2019, Mukesh Ambani had indicated that Reliance Jio and Reliance Retail would aim for public listings within five years. While the retail IPO is facing delays, the focus remains on optimizing Jio's business and market position to ensure a successful and value-accretive IPO in the future.
