Mukesh Ambani’s ambitious plan to take on Elon Musk involves launching Reliance Jio’s initial public offering (IPO) for Rs 8411570000000. Reliance retail may make its debut much later, according to reports, but Reliance Jio has scheduled a $100 billion initial public offering (IPO) for 2025.
Reliance Industries chairman Mukesh Ambani is aiming for Reliance Jio to go public in 2025. The telecom behemoth is expected to be one of India’s biggest initial public offerings (IPOs), with analysts valuing it at above $100 billion. However, according to those familiar with the situation, Ambani wants to resolve internal issues inside the retail division before going public, therefore Reliance Retail’s IPO will be postponed.
Timeline for Reliance Jio’s IPO
Since Ambani first stated in 2019 that Reliance Jio and Reliance Retail would be listed within five years, Reliance has been getting ready for these IPOs. Global investors including KKR, General Atlantic, and Abu Dhabi Investment Authority have helped him raise $25 billion for these endeavors since then, helping to value Jio and Retail at more over $100 billion.
With 479 million users, Reliance believes Jio has established a solid business position and is now the top telecom operator in India. But because of operational problems that need to be fixed, the retail IPO has been delayed until after 2025.
Jio’s IPO Will Set New Records
Jefferies put Jio’s possible IPO valuation at $112 billion as of July 2023, despite the fact that Reliance has not yet engaged bankers or finalized the valuation. The Jio IPO is anticipated to become the biggest in India’s history if it is successful, surpassing Hyundai India’s $3.3 billion IPO earlier this year.
The timing may alter, according to both people familiar with the talks, but the objective of making it India’s largest IPO to date is still in place.
Starlink Internet Service by Musk Will Face Competition from Jio
Dependency With the support of tech behemoths Google and Meta, Jio has big plans for digital innovation. Jio is ready to compete in the satellite internet market if Elon Musk’s Starlink opens in India. In order to improve its technological capabilities in a telecom market that is becoming more and more competitive, the corporation has also teamed with Nvidia to develop AI infrastructure.
Operational Issues Cause Retail IPO to Be Delayed
Reliance’s approach is to space out the two significant IPOs in order to prevent Jio and Retail from entering the market at the same time. More importantly, before contemplating an IPO, Reliance must resolve “operational issues” in its retail division.
Underperforming stores and decreased earnings per square foot have been problems for the retail segment, which has expanded quickly to become the largest grocery store network in India with 3,000 supermarkets.
The total revenue efficiency of Reliance has been impacted by the reported losses at a few of its physical retail locations.
Reliance Retail Growth
Reliance Retail has expanded into a number of industries, such as grocery, electronics, and fashion. In order to stay up with the quick commerce trend, which involves things being delivered within ten minutes, it just entered the e-commerce space and added faster delivery alternatives.
The retail unit reported a 1.1% year-over-year reduction in revenues for the July-September quarter, the first decline in three years, despite these increases. The new quick-commerce firms that are vying for Reliance’s supermarket sales are to blame for this decline.
