Reliance JIO IPO Expected to Valued at ₹40,000 Crore

The paperwork for Mukesh Ambani-led Reliance Jio Infocomm’s initial public offering (IPO) is underway and it’s set to be valued between ₹35,000-₹40,000 crore. Sources claim that the IPO will hit the market in the second half of the year.

The offer comprises an offer for sale (OFS) component and a fresh issue with a pre-IPO placement, said the sources.

Appetite of IPO

Touted as the largest IPO in the country, preliminary talks are underway for a pre-IPO placement. As the issue size is expected to be large, there would be satisfactory appetite among investors, sources said. They added, the IPO should not have difficulty in getting subscriptions. A questionnaire sent to RIL for clarification of the IPO remained unanswered.

The OFS component is slated to be the crucial part of the issue as it would provide investors to offload their stake in the company. Housed under Jio Platforms, Reliance Jio (RJio) includes foreign investors who own 33% stake in the company. Previously, RIL raised about ₹18 billion in 2020 by selling stakes to a slew of funds including Abu Dhabi Investment Authority, KKR, Mubadala, and Silver Lake.

Reliance JIO IPO Expected to Valued at ₹40,000 Crore

As per the brokerages RJio is valued at around $100 billion. However, sources say that the valuation is likely to touch $120 billion.

With 460 million wireless subscribers (till October), Reliance Jio is the largest telecom provider in the country. Previously, the company raised tariffs, leading to dwindling of subscribers, but still, it was able to maintain its lead. The tariff hike increased the company's profitability in the September quarter.