Reliance Jio Delays IPO Plans Beyond 2024: Sources

Reliance Jio Platforms, led by billionaire Mukesh Ambani, has delayed its planned IPO beyond this year to achieve higher revenue and a bigger subscriber base for its telecoms business while expanding its digital offerings. The company wants to boost its valuation before an initial public offering, which could happen in the future. Shares of parent conglomerate Reliance Industries fell sharply in Mumbai after the report, losing $6 billion in market value.

Indian telecom and digital giant Reliance Jio Platforms, led by billionaire Mukesh Ambani, has decided not to launch its planned IPO this year, delaying one of the country's most anticipated stock offerings. The decision, based on internal assessments, aims to achieve higher revenue and a larger subscriber base for its telecom business while expanding its digital offerings to boost valuation before an initial public offering (IPO).

The company, valued by analysts at over $100 billion, seeks to mature its business before proceeding with the stock market launch. Nearly 80% of Jio Platforms' latest annual revenue of $17.6 billion came from its telecom business, Reliance Jio Infocomm, which is India's biggest player. However, Ambani is also expanding his other niche digital businesses focused on developing apps, connected devices, and AI solutions for enterprises.

The delay in the IPO comes as Reliance Jio is set to compete with Elon Musk's Starlink internet service, expected to launch in India in the coming months. The company has also partnered with Nvidia to develop AI infrastructure and has investors like Google and Meta among its backers.

Ambani had previously stated that Jio would "move towards" a listing within five years, and Reuters reported last year that Reliance was targeting a 2025 Mumbai listing for Jio Platforms, aiming for it to be India's biggest ever IPO. However, the company wants the business to be more mature before proceeding with the IPO.

"Jio (IPO) is not going to happen this year, it's just not possible. The company wants the business to be more mature," said a source familiar with the matter. Both sources, who declined to be identified due to the confidential nature of the strategy, said Reliance had yet to appoint bankers to discuss a potential stock market offering.

The telecom business, Jio Infocomm, faced some churn in its subscriber base after price increases but has returned to growth this year, with over 488 million subscribers. Indian brokerage IIFL Capital has cut its 2025-26 core profit estimate for Jio by 3% due to higher costs and the expected increase in prices. The brokerage also cut its valuation estimate from $117 billion to $111 billion, though Jefferies values the business at $136 billion.

The delay in the IPO comes amid a recovering market sentiment in India, which is the world's No. 2 IPO market with $5.86 billion raised by June this year, accounting for 12% of total proceeds globally. The Reliance Retail IPO, which was also being delayed, is unlikely to happen before 2027 or 2028 due to operational challenges.

In recent years, Ambani has raised $25 billion collectively for digital, telecom, and retail businesses from investors like KKR, Abu Dhabi Investment Authority, General Atlantic, and Silver Lake. The investors are not upset about the IPO delays, as the money is already sitting in front of them.

References:
[1] https://economictimes.indiatimes.com/markets/ipos/fpos/ambanis-reliance-jio-delays-india-ipo-2025-listing-not-on-cards-sources/articleshow/122339120.cms
[2] https://www.business-standard.com/markets/ipo/reliance-jio-platforms-delays-ipo-plans-2025-listing-not-on-card-125070900644_1.html
[3] https://www.marketscreener.com/quote/stock/RELIANCE-INDUSTRIES-LTD-9058833/news/Exclusive-Ambani-s-Reliance-Jio-delays-India-IPO-beyond-this-year-sources-say-50467107/