Reliance Jio, part of Mukesh Ambani’s Reliance Industries, is gearing up for its much-anticipated IPO. Set for the latter half of 2025, the IPO aims to raise between Rs 35,000 and Rs 40,000 crore, potentially becoming the largest in Indian history. This valuation places the telecom giant at an impressive $120 billion.
The IPO will include a mix of new and existing shares, alongside a pre-IPO placement targeting select investors. While official confirmation from Reliance Industries is still pending, discussions about the pre-IPO placement are already underway.
Impact on Indian IPO Landscape
If successful, the Reliance Jio IPO will surpass Hyundai India’s Rs 27,870 crore IPO from October 2024, taking the top spot in India’s IPO history. Analysts predict that the listing could rejuvenate Reliance Industries’ stock, which closed 2024 with a rare loss of 6%, marking its first decline in a decade.
Telecom Sector Challenges and Opportunities
Jio has faced challenges, including a subscriber loss of 16.5 million between July and October 2024, following a tariff hike. However, Jio remains the market leader with a 40% subscriber market share. Analysts believe that the recent tariff hike will reflect positively in revenue by mid-2025, especially given the high number of long-duration plan subscribers.
Analyst Insights
Experts, including Bhaskar Chakraborty from Jefferies, have noted Jio’s strategic moves, such as selective tariff increases and its focus on subscriber market share, as strong indicators of its readiness for a public listing. UBS analysts, however, caution about potential risks from price wars and their impact on average revenue per user (ARPU) and subscriber additions.
The Reliance Jio IPO is poised to redefine India’s IPO landscape, offering opportunities for investors while marking a pivotal moment in the telecom sector’s growth story. Stay tuned for further updates as the IPO details unfold.
