Reliance Jio, the telecom giant under the umbrella of Mukesh Ambani’s Reliance Industries (RIL), is reportedly setting the stage for a monumental initial public offering (IPO) slated for the second half of 2025. According to multiple sources, Jio is targeting to raise anywhere between INR 35,000 to 40,000 crore, which might just crown it as India’s largest IPO ever.
Reliance Jio IPO Structure and Pre-Placement Plans
The IPO will likely combine new equity shares with an offer-for-sale (OFS) where existing shareholders, including promoters, are expected to sell off some of their stakes. There’s already buzz about pre-IPO placements, with talks in the early stages. How much fresh equity will be issued is still up in the air, affecting the size of these placements.
Valuation Estimates and Market Impact
Jio is aiming for a hefty valuation of about USD 120 billion, or roughly INR 10 lakh crore. Earlier, brokerages had speculated a bit lower at USD 100 billion, but Jio’s moves into AI, 5G, and retail tech have bumped up those figures.
The collaboration with Nvidia for AI language models could very well give Jio an edge, potentially uplifting RIL’s stock, which took a 6% dip in 2024.
Reliance Jio’s Performance and Growth Metrics
By October 2024, Jio claimed around 450 million wireless subscribers, retaining its crown as India’s top telecom provider, as per TRAI data. Their revenue grew by 17.7% year-on-year hitting INR 37,119 crore in the Q2 of FY 2024-25.
A tariff increase in mid-2024 saw a 7.4% YoY hike in ARPU to INR 195.1, with analysts anticipating the full impact to kick in over the next few quarters. Users are consuming about 31 GB of data per month on average, showing strong engagement.
Reliance Jio’s Technological Advancements
Reliance Jio is expanding its presence beyond connectivity, positioning itself as a key player in advanced technologies such as artificial intelligence (AI) and 5G. Its strategic partnership with Nvidia to develop AI models represents a significant step in this direction.
Additionally, Jio’s recent approval to launch satellite-based internet services further reinforces its commitment to enhancing digital infrastructure. This forward-looking approach has the potential to reshape Jio’s role within India’s evolving digital ecosystem.
Foreign Investor Exit and OFS Projections
Jio Platforms, where Jio sits, has 33% of its shares with foreign investors like ADIA, Silver Lake, Mubadala, and KKR, who together pumped in nearly USD 18 billion back in 2020. The IPO’s OFS could be their ticket out, either partially or fully.
Market Sentiment and Investor Appetite
Even with its size, the IPO is expected to draw significant interest, particularly with a pre-IPO placement likely to sweeten the deal for institutional investors. Jio’s strategy to monetize 5G before going public seems to be a smart move to reassure investors, bolstered by recent tariff adjustments and subscriber growth.
Key Takeaways and Future Outlook
Jio’s IPO, if all goes as planned, could redefine the scale of public offerings in India. With a target of INR 10 lakh crore in valuation and INR 40,000 crore to raise, Jio’s IPO underscores its vision for digital innovation.
The coming quarters will be crucial, watching Jio’s revenue, and tech adoption, particularly in AI. This IPO could not only set new records but also solidify Jio’s position as a leader in telecom and digital services. For more information related to IPO GMP, SEBI IPO Approval, and Live Subscription stay tuned to IPO Central.
