IPO of Ambani’s company is coming
In the Annual General Meeting (AGM) of Reliance Industries, Chairman Mukesh Ambani made the announcement for which investors were waiting for a long time. Ambani said that the company’s board has approved the draft red herring prospectus (DRHP) for the IPO of Jio Platforms and it will be filed with SEBI on Friday itself. With this move, one of India’s most talked about and much awaited IPOs is now moving towards becoming a reality.
Market experts believe that Jio’s proposed IPO could be included in the country’s biggest public issue so far. It is expected that this issue can leave behind the record of NSE’s proposed IPO of around Rs 30,000 crore and Hyundai Motor India’s IPO of Rs 27,870 crore. Under the proposal, up to 27 crore new shares with face value of Rs 10 will be issued.
Company’s focus on fresh issue
Reliance had initially considered the offer-for-sale (OFS) model in its initial plan, but later the company chose the path of fresh issue. Its biggest advantage is that the money raised from IPO will go directly to Jio and will be used for business expansion, investment in new technology and digital services. This also gives a message to the investors that the company wants to move forward by raising capital, and not giving an opportunity to the existing investors to exit. At the AGM, Ambani said that Jio’s listing will show the world that India is capable of creating global level technology companies. He said that the relationship between Reliance and its shareholders is based on trust and respect and the future of Jio is very bright.
Investor confidence increased due to strong performance
The IPO is coming at a time when Jio’s business is continuously strengthening. In the March quarter of the financial year 2025-26, the company’s operating revenue increased by 13 percent to Rs 44,928 crore. Net profit also increased by 13 percent to Rs 7,935 crore. EBITDA recorded an increase of 18 percent and operating margin also strengthened. Average revenue per user (ARPU) increased to Rs 214 due to tariff increase and better customer quality. Data consumption per customer stood at 42.3 GB per month and the total data traffic registered an increase of about 35 percent on an annual basis.
Strong base of more than 50 crore customers
Jio currently has more than 50 crore subscribers. The company is rapidly expanding 5G network, broadband, enterprise connectivity, cloud services and digital platforms across the country. In the year 2020, many global investors including Google, Meta, KKR, Silver Lake and Saudi Public Investment Fund had invested in Jio Platforms. This investment helped Reliance become net debt-free and laid the foundation for the company’s next growth phase. Now investors are eyeing the approval of SEBI and the launch timeline of the IPO. The market hopes that Jio’s listing can create a new record in the history of the Indian capital market.
Disclaimer: This article is for information only and should not be considered as investment advice in any way. TV9 Bharatvarsha advises its readers and viewers to consult their financial advisors before taking any money-related decisions.
