Mukesh Ambani, chairman and managing director of Reliance Industries Ltd., is speaking at an event in Mumbai, India, on March 30, 2024.
Indranil Aditya | Nurphoto | Getty Images
India’s richest man, Mukesh Ambani, on Friday announced plans to list the country’s largest telecom operator, Jio Platforms, by the first half of 2026.
Speaking to shareholders over video conference on Friday, Ambani said that the total user base of Jio, which started operations in 2016, has now crossed 500 million.
“Just a week from now, Jio will enter its 10th year of service to the nation. Looking back, these years have been the most glorious in India’s digital history,” Ambani said.
Reliance Industries, controlled by Ambani, holds a 66.5% stake in Jio Platforms Ltd, which in turn, owns all of Reliance Jio Infocomm.
In the near future, Ambani said that Jio aims to expand its operations outside of India. He did not offer a timeline.
Ambani also announced two AI partnerships: one with Google, aimed at providing services to developers, startups and enterprises. The second arrangement is a $100-million joint venture that will build and scale AI solutions for enterprises.
Mother of all Indian IPOs
Last month, Bloomberg reported that Reliance Industries was looking to sell a 5% stake in Jio — short of India’s customary 25% public float. Such a move could raise $6 billion, making it the biggest initial public offering in India since Hyundai Motors India’s $3.3 billion debut in October last year.
Reliance Jio’s nearest rival, Bharti Airtel, has a market value of $128.7 billion and trades at a price-to-earnings ratio of 31.92, according to LSEG data. A recent BofA Global Research report valued Jio at $115 billion, based on its projected cash flow, while estimating Bharat Airtel’s India cellular business to be worth $124 billion.
On Aug. 21, India’s market regulator proposed easing listing rules for mega deals. The changes would allow companies valued at 1 trillion rupees and 5 trillion to make a mandatory offer of just 2.75% and 2.5%, respectively, compared with the current minimum requirement of 5%.
An IPO exceeding $6 billion is likely to be too large for the Indian market to absorb. Hyundai Motors India’s public offering was oversubscribed more than two times, largely by institutional investors, while retail demand was unimpressive.
Correction: This article has been update to more accurately reflect in the lede the Jio unit that will be listing publicly.
