Mukesh Ambani targets a 2025 Mumbai listing for his telecom business Jio, value by analysts at over $100 billion (approx. Rs. 8,41,090 crore), and plans to launch his retail unit’s IPO much later, as per two people familiar with the matter.
Mr. Ambani hasn’t update his IPO timelines after saying in 2019 that Reliance Jio and Reliance Retail would “move towards” a listing within 5 years.
In recent years, Mukesh Ambani raise $25 billion (approx. Rs. 2,10,272 crore) collectively for digital, telecom and retail businesses from the likes of KKR, General Atlantic and Abu Dhabi Investment Authority, valuing both ventures at above $100 billion (approx. Rs. 8,41,090 crore).
The two sources said Reliance has now firm up plans to launch the Reliance Jio IPO in 2025 as it internally believes it has achieve a stable business and revenue stream in becoming India’s number one telecom player with 479 million subscribers.
But the retail business IPO is not expect until after 2025 as the company first needs to address some internal business and operational challenges, as per first source.
Oil-to-retail conglomerate Reliance Industries did not respond to a request for comment.
Reliance Jio is set to lock horns with Elon Musk if he launches his Starlink internet service in India, and Jio, which is also back by Google and Meta, has partner with Nvidia to develop AI infrastructure.
As per sources, there was no internal decision yet on a valuation of Reliance Jio and bankers haven’t yet appoint, but Jefferies in July peg the company’s estimate IPO valuation at $112 billion (approx. Rs. 9,42,021 crore).
Reliance aims for the 2025 Jio IPO to be India’s biggest ever, overtaking Hyundai India’s record $3.3 billion (approx. Rs. 27,756 crore) IPO this year, as per the first source.
Both the sources, who decline to be name as the discussions are private, said the IPO timelines can still change.
Indian markets recently scale record highs and by October, 270 companies had raise $12.58 billion (approx. Rs. 1,05,809 crore) from Indian IPOs this year, eclipsing the $7.42 billion (approx. Rs. 62,408 crore) raise in all of 2023.
Reliance’s current thinking is to not list the retail unit in the same year as Jio, as it doesn’t want to hit the market with two big IPOs around the same time, as per both the sources.
The first source said, there are “operational issues” Reliance internally wants to fix at the retail unit, which runs India’s biggest grocery store network of 3,000 supermarkets, before going for an IPO.
The company has grown “too fast” and venture into various retail formats, including e-commerce, and some of its brick-and-mortar stores have clock losses over years leading to less than ideal earnings per square feet of space, as per sources.
Reliance Retail’s empire includes fashion, grocery and electronic stores, and it has venture into e-commerce in recent years to take on Amazon.
It is now expanding into faster deliveries to tap the boom in quick commerce, a new shopping rage where products are being deliver in 10 minutes.
As per report a 1.1% year-on-year decline in sales in July-September, its first quarterly sales fall in at least 3 years, as competition from quick commerce startups is seen eating into its share of supermarket sales.
In 2023, Bernstein value the business, which owns toy retailer Hamleys and has forge partnerships in India with brands such as Jimmy Choo, Marks & Spencer and Pret A Manger, at $112 billion (approx. Rs. 9,42,021 crore).
Jio is 33% own by foreign investors after raising $17.84 billion (approx. Rs. 1,50,050 crore) in recent years.
Reliance Retail sold around a 12% stake to foreign investors over the same period and raised $7.44 billion (approx. Rs. 62,577 crore).
