Mukesh Ambani’s oil-to-telecom conglomerate Reliance Industries could make two huge announcements at its upcoming annual general meeting (AGM) this year, among other things.
Sources state that the conglomerate could be lining up to launch the initial public offerings of two of its subsidiaries: the telecom provider Reliance Jio Platform (RJPL), and the retail major Reliance Retail Ventures (RRVL).
Here’s everything you need to know about the (probable) upcoming IPO launches.
Reliance Jio and Reliance Retail Upcoming IPOs
One of the country’s largest conglomerates Reliance Industries could launch the public share sales of two of its companies, Reliance Jio and Reliance Retail, information on which will be provided in the conglomerate’s upcoming AGM in the year.
According to information provided by BussinessLine, each of the two Reliance companies is expected to raise funds in the range of Rs 50,000-75,000 crore in their stake sales. This is assumed considering the promoters of the companies would dilute at least 10% of their holdings in the public listings.
Sources state that the public listing of the two companies would likely be done after the dust over the Russia-Ukraine conflict settles down.
It is expected that Reliance Retail will first be listed and after that Reliance Jio will be listed.
RRVL IPO could be launched by Dec 2022 and would likely be valued at around Rs 1.75 lakh crore for FY23.
What is Expected from Reliance Jio’s IPO?
As mentioned above, Reliance Jio’s IPO will be second to Reliance Retail’s public listing, expected to launch in Dec 2022.
Sources believe that Jio could witness listings not only on the Indian exchanges (BSE and NSE) but also on global exchanges, like US’ Nasdaq Composite, which is the largest marketplace for tech companies in the world.
In 2020, Reliance Jio sold a 33% stake to its 13 investors, of which Facebook and Google were parts, so their contribution in the alleged IPO could also be expected.
“RJPL could be valued at around Rs 7.5 lakh crore due to its high 40-50% EBITDA. It is fair to give around 12 times EBITDA valuation to RJPL,” said the MD of KR Choksey Investment Managers.