Reliance Industries (RIL) is exploring the sale of an around 2.5% stake through the listing of its telecom and digital arm, Jio Platforms, in the first half of the calendar year, people familiar with the matter said.
Regulatory Hurdles and the 2.5% Stake Strategy
The timing and size of the offering, however, would hinge on regulatory clarity from the finance ministry on a proposal to relax the minimum public float norms for large companies.
At present, market rules require large issuers to offer at least 5% of equity in an IPO. Regulators have proposed lowering this threshold to 2.5%, but the change is yet to receive final approval. RIL is said to be keen on a smaller float, given the scale of the business, as a limited supply of shares could help sharpen price discovery at listing.
Bankers from Morgan Stanley and Kotak Mahindra Capital are said to be working with the oil-to-telecom major on preparing the draft red herring prospectus (DRHP), even though formal mandates are yet to be announced. People tracking the process said the DRHP is expected to be filed with the Securities and Exchange Board of India (Sebi) by the end of March. Potential associate bankers include Axis Capital, Jefferies and ICICI Securities.
Reliance Jio did not respond to queries sent on the matter till press time.
Subject to regulatory clearances and market conditions, the IPO itself is likely to follow by late May or June. The transaction could rank among the largest listings in the country, given the size of Jio Platforms and investor interest in the business.
In November last year, Jefferies raised Jio Platforms’ valuation to $180 billion, citing strong revenue and Ebitda growth prospects driven by tariff increases, rapid expansion in home broadband through fixed wireless access, scaling up of the enterprise business, and improving monetisation of its technology platforms. At the latest valuation, RIL’s offloading of 2.5% stake will results in gains of around $4.5 billion (Rs 40,500 crore).
Reliance Chairman Mukesh Ambani had formally flagged the IPO plans at the company’s annual general meeting last year, indicating that preparations were under way. “Jio is making all arrangements to file for its IPO. We are aiming to list Jio by the first half of 2026, subject to approvals,” he said, adding that the listing would showcase Jio’s ability to create value on a par with global peers and offer an attractive opportunity for investors.
The IPO announcement followed Jio completing a decade of operations and crossing the 500-million customer mark, underscoring the scale it has achieved since its launch. The final structure of the issue—whether it will be a pure offer-for-sale or include fresh issuance—remains undecided.
Massive Value Creation for Global Tech Titans
Marquee investors such as Meta Platforms and Google are set for sizeable exit gains. Meta invested Rs 43,574 crore in 2020 for a 9.99% stake, while Google committed Rs 33,737 crore for 7.73%, valuing Jio at about Rs 4.6-5.2 lakh crore at the time. With analysts now pegging the IPO valuation at $180 billion (approx. Rs 16 lakh crore), both investors could potentially more than double their investments, marking one of the most lucrative exits from RIL’s digital foray.