Jio IPO buzz: Mukesh Ambani eyes $4 billion raise with 2.5% stake sale
Reliance Jio Platforms is planning an IPO this year involving a 2.5% stake sale potentially worth over $4 billion, which would make it India's largest-ever public offering. Based on Jefferies' November valuation of $180 billion, the offering could raise $4.50 billion, surpassing Hyundai Motor India's $3.30 billion record. The IPO depends on regulatory approval to reduce minimum share sale requirements from 5% to 2.5% for large companies, with Morgan Stanley and Kotak working on documentation.
*this image is generated using AI for illustrative purposes only.
Reliance Jio Platforms is considering an initial public offering this year that could become India's largest-ever IPO, with plans to float 2.5% of the company for more than $4 billion. The telecom giant, led by Mukesh Ambani, operates India's largest telecom network serving over 500 million users.
Valuation and Market Impact
The IPO's scale becomes apparent when examining current valuations and market comparisons:
| Parameter: | Details |
|---|---|
| Current Valuation (Jefferies, November): | $180 billion |
| Proposed Stake Sale: | 2.5% |
| Expected Raise: | $4.50 billion |
| Previous Record (Hyundai Motor India): | $3.30 billion |
Some investment bankers are pitching even higher valuations of $200 billion to $240 billion for the business, though Reliance has not decided on a firm valuation number. The company would prefer to list only 2.5% of Jio's shares given the large size of the company, creating more pricing tension in the market.
Regulatory Framework and Structure
The IPO's execution depends on regulatory changes currently awaiting approval. India's market regulator has proposed reducing the minimum size of share sales for large companies seeking IPOs from 5% to 2.5%, but this proposal requires finance ministry approval. One source noted that "the preference is to list 2.5% at this point if the law gets changed as a smaller amount creates more pricing tension."
The structure of the offering remains undecided - it could be an offer-for-sale allowing existing shareholders to sell their shares to the public, or involve issuing new stock. Hyundai's India IPO served as an offer-for-sale without raising new funds for the company.
Timeline and Preparation
Mukesh Ambani first announced plans to list Jio within five years in 2019. The timeline has evolved significantly:
- 2019: Initial IPO plans announced with five-year timeline
- Last year: Offering delayed beyond 2025 for higher valuation
- August: Ambani stated Jio would list in "first half of 2026"
- Current status: Timeline depends on market conditions
Morgan Stanley and India's Kotak are already working with Reliance on drafting IPO papers, though formal appointments have not been made. The documentation process can be lengthy, and Reliance expects many foreign investors who invested in recent years to seek exits via the IPO.
Business Expansion and Competition
Over the past six years, Jio has diversified beyond telecommunications into artificial intelligence and secured funding from prominent investors including KKR, General Atlantic, Silver Lake, and the Abu Dhabi Investment Authority. The company has partnered with Nvidia to develop AI infrastructure and faces upcoming competition from Elon Musk's Starlink internet service, expected to launch in India in the coming months.
Market Context
The potential Jio listing would strengthen India's already robust IPO market momentum. India ranked as the world's second-largest primary equity issuance market in 2025, raising $21.60 billion as of December 18, according to LSEG data. The size of the Jio stake sale could change in the coming months as the company awaits regulatory clarity on the 2.5% public float rule.
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