Mukesh Ambani, chairman and managing director of Reliance Industries Ltd., is speaking at an event in Mumbai, India, on March 30, 2024.
Indranil Aditya | Nurphoto | Getty Images
India’s richest man, Mukesh Ambani, on Friday announced plans to list the country’s largest telecom operator, Reliance Jio Infocomm, by the first half of 2026.
Speaking to shareholders over video conference on Friday, Ambani said that the total user base of Jio, which started operations in 2016, has now crossed 500 million.
Reliance Industries, controlled by Ambani, holds a 66.5% stake in Jio Platforms Ltd, which in turn, owns all of Reliance Jio Infocomm.
Its nearest rival, Bharti Airtel, has a market value of $128.7 billion and trades at a price-to-earnings ratio of 31.92, according to LSEG data. A recent BofA Global Research report valued Jio at $115 billion, based on its projected cash flow, while estimating Bharat Airtel’s India cellular business to be worth $124 billion.
Last month, Bloomberg reported that Reliance Industries was looking to sell a 5% stake in Jio — short of India’s customary 25% public float. Such a move could raise $6 billion, making it the biggest initial public offering in India since Hyundai Motors India’s $3.3 billion debut in October last year.
On Aug. 21, India’s market regulator proposed easing listing rules for mega deals. The changes would allow companies valued at 1 trillion rupees and 5 trillion to make a mandatory offer of just 2.75% and 2.5%, respectively, compared with the current minimum requirement of 5%.
An IPO exceeding $6 billion is likely to be too large for the Indian market to absorb. Hyundai Motors India’s public offering was oversubscribed more than two times, largely by institutional investors, while retail demand was unimpressive.
