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In what could be the biggest-ever initial public offering (IPO) in Dalal Street’s history, billionaire Mukesh Ambani is said to be preparing to get Reliance Jio, the telecom arm of Reliance Industries Ltd (RIL), listed on stock exchanges to raise around Rs 35,000-40,000 crore, according to a newspaper report today. By valuing the telecom company at $120 billion, the mammoth IPO is expected in the second half of 2025 and will include a sale of existing shares as well as new shares, along with a pre-IPO placement for select investors, according to a report published in The Hindu Business Line. Discussions for the pre-IPO placement have already begun and the final proportion of existing versus new shares being offered is yet to be determined, it said.
There has been no official communication from RIL on the IPO and the authenticity of the report could not be verified independently. Also read | Will the stock market crash in 2025? Watch out for these 6 risk factors At Rs 40,000 crore, Reliance Jio IPO would be the biggest in India and overtake Hyundai India's Rs 27,870 crore IPO on the Street in October 2024. Stock Trading Masterclass on Value Investing and Company Valuation View Program Stock Trading Market 104: Options Trading: Kickstart Your F&O Adventure By - Saketh R, Founder- QuickAlpha, Full Time Options Trader View Program Stock Trading Technical Analysis for Everyone - Technical Analysis Course By - Abhijit Paul, Technical Research Head, Fund Manager- ICICI Securities View Program Stock Trading Stock Markets Made Easy By - elearnmarkets, Financial Education by StockEdge View Program Stock Trading Renko Chart Patterns Made Easy By - Kaushik Akiwatkar, Derivative Trader and Investor View Program Stock Trading Market 101: An Insight into Trendlines and Momentum By - Rohit Srivastava, Founder- Indiacharts.
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The heavyweight stock is down around 6% in the last one year. Last year in July, global investment banking firm Jefferies had also said that the big-bang listing of Reliance Jio could be in 2025 at a valuation of $112 billion. "Jio leading the way in the recent tariff hikes unlike in the past while keeping feature phone tariffs unchanged shows focus on monetization and subscriber market share gains.
These moves create a case for a possible public listing in CY25 in our view," Bhaskar Chakraborty of Jefferies had said in the report. Also read | ITC Hotels share listing price can go up to Rs 300 after demerger. What brokerages say After the tariff hike in July 2024, the entire telecom industry has been losing subscribers but the pace of decline has slowed with September recording the peak.
From July to October, Reliance Jio has lost around 16.5 million subscribers. Jio remains the market leader, with a subscriber market share of 40%.
"For the telecom business, incumbents' aggressive competitiveness to maintain market share may lead to a price war impacting ARPU, although the key risk comes from the potential impact on subscriber additions," UBS said. Analysts say that the complete flow-through of the recent tariff hike to revenue is likely by the next 2-3 quarters for Jio given a higher proportion of Jio's subscribers is on long-duration plans. (You can now subscribe to our ETMarkets WhatsApp channel ).
