Ambani's Reliance Jio considers 2.5% public offering in 2026 India IPO, sources say

Reliance Jio Platforms is considering an initial public offering this year that would float 2.5 per cent of the company, people familiar with the matter said, a move that could make it the country's largest-ever IPO worth more than $4 billion.

The company, led by Mukesh Ambani, is the parent of India's largest telecom operator Reliance Jio - with more than 500 million users. Its debut is the country's most highly anticipated IPO this year.

In November, investment bank Jefferies estimated that Reliance Jio's valuation stood at $180 billion. At that valuation, a 2.5 per cent stake sale would raise $4.5 billion, dwarfing Hyundai Motor India's $3.3 billion IPO in 2024.

Over the past six years, Jio has diversified into artificial intelligence and raised funds from well-known investors including KKR, General Atlantic, Silver Lake and the Abu Dhabi Investment Authority.

Reliance would like to list only 2.5 per cent of Jio's shares given the large size of the company, the sources said, even though a proposal from India's market regulator to reduce the minimum size of share sales for large companies seeking IPOs to 2.5 per cent from 5 per cent is awaiting approval from the finance ministry.

"The preference is to list 2.5 per cent at this point if the law gets changed as a smaller amount creates more pricing tension," one of the sources with direct knowledge said, adding that some bankers were pitching a valuation of $200 billion to $240 billion for the business, though Reliance hasn't decided on a firm number.

Reliance did not respond to Reuters requests for comment. The sources declined to be named as they were not authorised to speak publicly.

Typically around 75 per cent to 80 per cent of Jio Platforms annual revenues come from its telecoms business.

RED-HOT INDIAN IPO MARKET

It has not been decided if the Jio IPO would be a so-called offer-for-sale, which allows existing shareholders to sell their shares to the public, or if it would also involve the issuance of new stock. Hyundai's India IPO, for example, was an offer-for-sale and did not raise new funds.

The Jio listing would add to strong momentum in India's IPO market over the last couple of years; it ranked as the world's No. 2 primary equity issuance market in 2025, raising $21.6 billion as of December 18, according to LSEG data.

Reliance also plans to list its retail unit, but that is unlikely before 2027 or 2028, sources have previously told Reuters.

In 2019, Ambani first flagged plans to list Jio within five years. Last year, Reuters reported that he delayed the offering beyond 2025 as the company wanted a higher valuation by expanding into other niche digital businesses.

TWO BANKS WORKING ON PROSPECTUS

Reliance Jio is also set to lock horns with Elon Musk, who is expected to launch the Starlink internet service in India in the coming months. Jio has also partnered Nvidia to develop AI infrastructure.

In August, Ambani said Jio would list in the "first half of 2026". The listing timeline depends on market conditions, one of the sources said.

Although formal appointments have yet to be made, bankers from Morgan Stanley and India's Kotak are already working with Reliance on drafting the Jio IPO papers, which can be a drawn-out process, a fifth source with direct knowledge of the situation said.

Reliance is waiting for the 2.5 per cent public float rule to be cleared by the finance ministry and the size of the sale could change in the coming months, the person added.

Reliance expects many foreign investors who invested in the company in recent years to seek an exit via the IPO, the person said.

Morgan Stanley and Kotak did not respond to Reuters requests for comment.