Reliance Retail targets $200B valuation with IPO planned for 2027
What's the story
Mukesh Ambani-led Reliance Industries is preparing for a "double dhamaka" in India's equity markets, with plans to list Jio Platforms in 2026 and Reliance Retail in 2027, according to reports. The conglomerate's retail arm could be valued at nearly $200 billion during its market debut. Ambani's strategy reflects a broader ambition to unlock value from Reliance's consumer-facing businesses while boosting investor participation in two of its fastest-growing arms.
Pre-IPO preparations
Reliance demerges FMCG unit as part of preparations
Reliance has already demerged its fast-moving consumer goods (FMCG) unit, Reliance Consumer Products from Reliance Retail. The move will make the former a direct subsidiary of the parent company. In addition to this, Reliance Retail is also shutting down underperforming outlets as part of a major restructuring exercise. These steps are aimed at improving margins and streamlining operations before the market debut.
Retail prospects
Formats that will continue to operate post-restructuring
Despite the restructuring, Reliance Retail will continue to operate its existing formats such as Reliance Smart, Freshpik, Reliance Digital, JioMart, Reliance Trends, 7-Eleven, and Reliance Jewels. There are also talks of a possible consolidation of formats, but those discussions are still in the early stages. The upcoming IPO is likely to offer exits for major investors including Singapore's GIC, Abu Dhabi Investment Authority, Qatar Investment Authority, KKR, TPG, and Silver Lake.
Market impact
Reliance Jio's upcoming IPO expected to be a blockbuster
The upcoming IPO of Reliance Jio is expected to be a major event in the Indian capital markets. Global brokerage Goldman Sachs has estimated Reliance Jio's enterprise value at $154 billion in a bull-case scenario. With more than 500 million subscribers and investments from global players such as Meta, Google, and Qualcomm, Jio has built a strong foundation. Its IPO will attract significant investor interest, given its dominant position in the Indian telecom, broadband, and digital ecosystems.