Reliance Jio Infocomm is expected to file draft papers for its $4 billion initial public offering (IPO) in the coming days, possibly before Reliance Industries Chairman Mukesh Ambani's annual address to shareholders at the company's Annual General Meeting (AGM) on Friday. If successful, this offering would be one of India's largest public issues, potentially surpassing Hyundai Motor India's $3.3 billion IPO and becoming the biggest stock market listing in the country's history.
The proposed IPO is now structured as a largely fresh issue, meaning the funds raised would go directly to Jio for expansion rather than to existing shareholders selling their stakes. This shift from an offer-for-sale (OFS) structure reportedly followed discussions with existing investors over valuation and aims to prevent excessive valuation expectations, allowing for future value creation after listing. In 2020, Jio Platforms raised over $20 billion from 13 global investors, including Google and Meta.
The anticipated filing is a significant step towards fulfilling Ambani's promise at the 2025 AGM that Jio would be listed in the first half of 2026, a timeline it now appears set to meet. This comes as India's primary market activity has slowed, and Reliance Industries has faced a challenging year, with its shares declining around 15% and net profit falling 13% year-on-year for the quarter ended March. The Jio IPO is estimated to value the company in the range of $130 billion to $180 billion.
