Mukesh Ambani Reliance Jio Set to Launch IPO: Reliance Jio Infocomm, the telecom giant owned by Mukesh Ambani, is preparing to enter the IPO market. The company has initiated the process for its Initial Public Offering (IPO), which is expected to become the largest in India’s history.
Expected IPO Size and Launch Timeline
Reports suggest that the IPO size will range between ₹35,000 crore and ₹40,000 crore. According to sources quoted in The Hindu BusinessLine, the offering will consist of both a fresh issue and a pre-IPO placement. Reliance Jio is targeting the second half of the year for the IPO launch.
Bankers involved in the process believe the large issue size will not face challenges in garnering sufficient demand. They also mentioned that the amount raised through pre-IPO placements will depend on the size of the fresh issue. Details regarding the division between the offer for sale and the fresh issue are still being finalized.
Foreign Investors’ Stake
Reliance Jio operates under Jio Platforms, which currently has a foreign investment stake of approximately 33%. In 2020, the company raised nearly $18 billion by selling stakes to investors such as Abu Dhabi Investment Authority, KKR, Mubadala, and Silver Lake. This diverse investment portfolio highlights the global confidence in Reliance Jio’s business potential.
Valuation Estimates
Brokerages estimate Reliance Jio’s valuation to be around $100 billion, with some suggesting it could rise to $120 billion. This valuation is further boosted by the company’s focus on cutting-edge technology and artificial intelligence (AI). Recently, Jio Platforms announced a collaboration with global tech leader NVIDIA to develop an AI language model. Such advancements are expected to give Jio a competitive edge, particularly among startups.
Recent Developments and Investments
Reliance Jio has also received regulatory approval to launch satellite internet services, an area of growing interest in the tech industry. Over the past five years, Reliance Industries Limited (RIL) has invested approximately $3 billion to acquire and expand its telecommunications, internet, and digital businesses. As of October, Reliance Jio boasts 460 million wireless subscribers, making it the largest telecom operator in India.
Conclusion
With a robust valuation, significant foreign investments, and ongoing innovations in AI and satellite internet, Reliance Jio’s upcoming IPO is poised to be a milestone in India’s financial markets. Investors and stakeholders eagerly await what could become the country’s largest IPO to date.
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