Reliance Industries eyeing for India’s ‘biggest ever IPO’ for its telecom unit

In what could be the biggest IPO in India’s history, Mukesh Ambani led Reliance Industries is considering taking its telecom unit, Jio Infocomm, public. The conglomerate is looking to raise Rs 52,200 crore by selling a 5% stake in the company. Although the plan is still in its initial stage, the company is reportedly holding informal talks with SEBI to secure regulatory approval.

Looking at the IPO size, this listing could not only eclipse all previous domestic IPO records, but also, it will be one of the largest global public offerings of the year.

Hyundai Motor India’s Rs 28,000 crore IPO in 2024 currently holds the largest on record.

As per Bloomberg, RIL has begun informal discussions with capital markets regulator SEBI, seeking an exemption from the existing rule that requires companies to maintain a minimum public shareholding of 25%.

The company has reportedly conveyed concerns that the domestic market may not have sufficient depth to absorb a higher float, prompting the request for a waiver.

While the IPO may hit the markets as early as next year, the company has not yet made any official announcement on it so far.

The final timing may vary depending on market dynamics and regulatory approval. Jio is also expected to grow its subscriber base and digital services further before going public, reflecting an aspiration for a stronger valuation.