Reliance Jio to file IPO papers in 2-3 weeks: Report
What's the story
Reliance Industries' telecom subsidiary, Jio Platforms, is gearing up to file its draft red herring prospectus (DRHP) for an initial public offering (IPO) in the next two to three weeks, according to Mint. The move comes as part of a plan to sell a 2.5% stake in what is being touted as India's largest-ever IPO by a private company.
Valuation expectations
IPO to value Jio Platforms at $100-120 billion
The upcoming IPO is expected to value Jio Platforms between $100 billion and $120 billion. The company is in the final stages of preparing its DRHP and will soon engage a larger panel of banks to submit this document with the Securities and Exchange Board of India (SEBI).
Regulatory changes
Finance ministry relaxes rules for large companies' public offers
The finance ministry recently allowed large companies with a certain market cap to list with just a 2.5% stake sale through public offers, instead of the earlier 5% requirement. This easing of rules will also help other companies like the National Stock Exchange (NSE) to successfully list on Indian exchanges. The new regulations permit firms with a post-issue valuation above ₹5 trillion ($54 billion) to dilute at least 2.5% equity, down from the previous 5%.
Market trends
Jio's groundwork for IPO laid last year
Jio Platforms is the digital and telecom arm of Reliance Industries and offers wireless, entertainment, and cloud services. The groundwork for its IPO was laid last year when chairman Mukesh Ambani announced plans for a public offer in H1 2026. Morgan Stanley India is said to be leading the charge as lead banker for this IPO, with Kotak Mahindra Capital Co., Axis Capital, and Goldman Sachs also in the running.
Market response
Market awaits response to pure-play telecom firms' listings
Jio's listing will also test the market's appetite for pure-play telecom companies, as its rivals Bharti Airtel and Vodafone Idea are already listed. Between 2020 and 2021, Jio Platforms sold a 32.96% stake to investors such as Facebook (now Meta), Google, Silver Lake, Vista Equity Partners, General Atlantic, KKR and others.