Mon Nov 04 19:26:29 UTC 2024: ## Ambani’s Jio Set for Massive IPO, Reliance Retail to Follow

**Mumbai, India** – Billionaire Mukesh Ambani’s telecom giant, Jio, is gearing up for a potential record-breaking initial public offering (IPO) in 2025, followed by a separate IPO for Reliance Retail at a later date, according to sources cited by Reuters.

The Jio IPO could surpass Hyundai India’s $3.3 billion offering this year, becoming India’s largest IPO ever. Analysts value Jio at over $100 billion, attributing its success to its dominance in the Indian telecom market with 479 million subscribers. The IPO is being launched as the company believes it has achieved a stable business and revenue stream.

While no internal decision has been made on Jio’s valuation, investment bank Jefferies estimated it at $112 billion in July.

The IPO plans come at a time when Jio is preparing to compete with Elon Musk’s Starlink internet service, which is set to launch in India. Ambani has already raised $25 billion from investors like KKR, General Atlantic, and Abu Dhabi Investment Authority for his digital, telecom, and retail businesses. Notably, Jio Platforms, the company that owns the telecom and digital businesses, is now 33% owned by foreign investors after raising $17.84 billion in recent years.

Reliance Retail, which operates India’s largest grocery store network with 3,000 supermarkets, will pursue its IPO after 2025. This decision is attributed to operational challenges within the retail arm, which Reliance wants to address before entering the market. The company also aims to avoid launching two major IPOs simultaneously.

India’s IPO market has witnessed significant growth this year, with 270 companies raising a total of $12.58 billion by October. This marks a substantial increase from the $7.42 billion raised in all of 2023.

Reliance Retail’s operational issues stem from its rapid expansion into e-commerce to compete with Amazon and quick commerce for 10-minute deliveries. This growth has resulted in losses for some brick-and-mortar stores, with the company reporting a 1.1% decline in sales for the July-September quarter. Despite these challenges, Reliance Retail was valued at $112 billion by Bernstein last year.

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