Reliance Jio Platforms will soon file DRHP for IPO. 2.5% stake will be sold through OFS. With a valuation of $125 billion, it has the potential to become India’s largest IPO ever.
Jio IPO: Jio Platforms, one of India’s largest telecom companies, is now moving forward rapidly with its IPO. The company may soon file DRHP (Draft Red Herring Prospectus) with SEBI. According to sources, this process may start in the coming few days and the new financial year 2026-27 may begin with the formal launch of Jio IPO.
The move is part of a long-running plan, the first glimpse of which was given by Mukesh Ambani at his AGM in 2019. At that time he had indicated that telecom and retail businesses could be listed in the next few years. Now after about six and a half years, this plan seems to be coming on the ground.
Big project under the leadership of Akash Ambani
Jio IPO is being taken forward under the leadership of Akash Ambani. This is considered to be the biggest project of his career so far. In the year 2022, when Mukesh Ambani left the command of Jio, Akash Ambani was made the chairman.
The change was part of Reliance Group’s succession planning. Now Akash Ambani’s leadership ability and strategy will also be tested through IPO. The entire team of the company is busy making this mega event a success.
2.5 percent stake sale through OFS
The company is not planning to issue new equity in Jio IPO. Instead, 2.5 percent stake can be sold through OFS (Offer For Sale). This means that existing investors will sell their shares in the market.
With this step the company will not raise new capital directly, but investors will get an opportunity to sell their stake. This strategy helps in balancing the demand and supply of shares in the market.
Likely to become India’s largest IPO
The biggest discussion regarding Jio IPO is about its possible size. According to reports, the valuation of the company could be around $125 billion. Based on this valuation, the IPO size could exceed $3 billion.
If this happens, it could become India’s biggest IPO ever. Earlier, the IPO of Life Insurance Corporation of India in 2022 was about $ 2.5 billion. Whereas Hyundai’s IPO in 2024 was worth around $2.97 billion. In this way Jio IPO can leave behind both these big records.
Valuation will depend on market conditions
However, the final size and valuation of the IPO will depend on market conditions. Many factors like the situation in the stock market at that time, the demand of investors and the global economic environment will play a role in this. This process may take a few months. The company and its advisors will keep an eye on when is the right time for the IPO, so that maximum value can be achieved.
IPO team and preparation
The company has prepared a strong team to handle this mega IPO. This includes CFO Saurabh Sancheti, MD Pankaj Pawar and strategy head Anshuman Thakur.
Apart from this, a team of about 17 investment bankers will also be involved in this IPO, who will manage the entire process. This shows how serious the company is about this IPO and is preparing at every level to make it successful.
Gained momentum from new rules
Recently, preparations for Jio IPO have gained further momentum after a circular issued by the Finance Ministry. According to the new rules, companies with post-issue market value of more than Rs 5 lakh crore can sell a minimum of 2.5 per cent equity.
Earlier this limit was 5 percent, due to which companies had to sell more stake. Now with this change it has become easier for big companies to bring IPO and Jio is also taking advantage of it.
Jio’s market position is strong
Reliance Jio is India’s largest telecom company. It has more than 491 million wireless subscribers, placing it at the forefront of the market.
Its biggest rival Bharti Airtel has 46.7 crore customers. However, Airtel is slightly ahead in terms of ARPU (Average Revenue Per User), where its ARPU is Rs 259, while Jio’s is Rs 213.7 per month.
These figures show that Jio has a large customer base, but it needs to work on more strategies to increase revenue.
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