Reliance Jio preparing for 2025 launch; retail arm to launch much latter
Reliance Jio is preparing for a 2025 initial public offering (IPO) on the stock market, while the retail arm’s launch is expected to follow at a later date. Sources familiar with the situation informed news agency Reuters that Mukesh Ambani, a billionaire whose telecom company Jio is estimated to be worth more than $100 billion by analysts, intends to separately list his telecom and retail divisions.
Ambani, who leads Reliance Industries Limited, last discussed IPO plans in 2019, indicating that both Reliance Jio and Reliance Retail were aiming to go public within the next five years.
Recently, the company has attracted $25 billion from investors such as KKR, General Atlantic, and the Abu Dhabi Investment Authority, resulting in both companies being valued at over $100 billion.
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Based on information from the news agency’s two sources, Reliance perceives Jio’s business model as secure, thanks to its 479 million subscribers leading the telecom sector in India.
The company plans to list Jio in 2025, with the retail unit’s IPO expected to come later due to internal operational priorities.
Ambani’s retail business has expanded quickly to form a 3,000-store supermarket chain, but the company is focusing on resolving operational issues before thinking about going public.
Reports have indicated that the company’s quick growth and exploration of various retail models, such as online shopping, have had an impact on store profitability and earnings per square foot, which the company plans to address before going public.
