Reliance Jio's IPO slated for 2025 with $100 billion valuation
Mukesh Ambani, the head honcho of Reliance Industries, is gearing up for a 2025 initial public offering (IPO) of his telecom venture Reliance Jio. The much-anticipated listing is expected to value the company at over $100 billion, Reuters reported citing two people familiar with the matter. However, Ambani has not officially announced Jio's market debut since his 2019 statement on potential listings within five years.
Reliance Jio's journey to becoming India's top telecom player
Reliance Jio has cemented its place as India's top telecom operator over 479 million subscribers. The company feels it has created a stable business and revenue model, which is pushing the move for an IPO in 2025. Over the last few years, Ambani has raised $25 billion from investors such as KKR, General Atlantic, and Abu Dhabi Investment Authority for his digital, telecom, and retail ventures. For Q2, Jio posted a 23.4% jump in its profit, hitting ₹6,539 crore.
Reliance Retail's IPO delayed due to internal challenges
The IPO for Reliance Retail has been pushed past 2025 owing to internal business and operational challenges. The company runs India's largest grocery store chain with more than 3,000 supermarkets. There are 'operational issues' Reliance internally wants to fix at the retail unit before going for an IPO, as per the Reuters report. The firm's aggressive expansion into retail formats and e-commerce has seen some stores posting losses over the years.
Reliance Retail's sales dip amid quick commerce competition
Reliance Retail also reported a 1.1% year-on-year decline in sales for the July-September period, its first quarterly sales drop in at least three years. The decline is due to competition from quick commerce startups affecting its supermarket sales share. Despite the challenges, Bernstein valued the business at $112 billion last year. The company has also partnered with brands like Jimmy Choo, Marks & Spencer, and Pret A Manger in India.
