Reliance Jio shelves IPO plans; 2025 listing off the table
Mukesh Ambani's digital arm aims for higher revenue and subscriber base before public listing
Reliance Jio Platforms, the telecom and digital services arm of Mukesh Ambani’s Reliance Industries, has postponed its anticipated initial public offering (IPO) originally slated for 2025, according to two sources familiar with the matter. The company aims to enhance its revenue streams and expand its subscriber base before proceeding with the listing. Analysts currently value Jio at over $100 billion.
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Strategic growth focus
Approximately 80 per cent of Jio Platforms' $17.6 billion annual revenue is generated by Reliance Jio Infocomm, India's largest telecom operator with over 488 million subscribers. The company is also investing in enterprise digital solutions, connected devices, and artificial intelligence infrastructure, including a partnership with Nvidia. Additionally, Jio is preparing to compete with Elon Musk’s Starlink internet service, expected to launch in India soon.
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Reliance Retail IPO deferred
The IPO for Reliance Retail, which operates India's largest grocery chain, is also expected to be delayed until at least 2027 or 2028 due to operational challenges. The retail arm is addressing issues such as suboptimal earnings per square foot and competition from quick commerce startups.
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Market conditions and investor sentiment
Despite a robust IPO market in India in 2024, global trade tensions have affected investor sentiment. However, existing investors in Reliance Jio, including Google and Meta, are reportedly supportive of the delay, viewing it as a strategic move to enhance long-term value.