Reliance Jio set for IPO in 2025, Reliance Retail to list much later

Reliance Jio IPO: Billionaire businessman Mukesh Ambani targets a 2025 Mumbai listing for his telecom business Jio, valued by analysts at over $100 billion, and plans to launch his retail unit's IPO much later, two people familiar with matter told Reuters.

Reliance Industries top boss Ambani hasn't updated his IPO timelines after saying in 2019 that Reliance Jio and Reliance Retail would "move towards" a listing within five years.

In recent years, Ambani, Asia's richest man, raised $25 billion collectively for digital, telecom and retail businesses from likes of KKR, General Atlantic and Abu Dhabi Investment Authority, valuing both ventures at above $100 billion.

two sources said Reliance has w firmed up plans to launch Reliance Jio IPO in 2025 as it internally believes it has achieved a stable business and revenue stream in becoming India's . 1 telecom player with 479 million subscribers.

But retail business IPO is t expected until after 2025 as company first needs to address some internal business and operational challenges, said first source.

Oil-to-retail conglomerate Reliance Industries did t respond to a request for comment.

Reliance Jio is set to lock horns with Elon Musk if he launches his Starlink internet service in India, and Jio, which is also backed by Google and Meta, has partnered with Nvidia to develop AI infrastructure.

sources said re was internal decision yet on a valuation of Reliance Jio and bankers haven't yet been appointed, but Jefferies in July pegged company's estimated IPO valuation at $112 billion.

Reliance, however, aims for 2025 Jio IPO to be India's biggest ever, overtaking Hyundai India's recorded $3.3 billion IPO this year, said first source.

Both sources, who declined to be named as discussions are private, said IPO timelines can still change.

Indian markets recently scaled record highs and by October, 270 companies had raised $12.58 billion from Indian IPOs this year, eclipsing $7.42 billion raised in all of 2023.

Retail fixes needed 

Reliance's current thinking is to t list retail unit in same year as JIO, as it doesn't want to hit market with two big IPOs around same time, said both sources.

More critically, first source said, re are "operational issues" Reliance internally wants to fix at retail unit, which runs India's biggest grocery store network of 3,000 supermarkets, before going for an IPO.

company has grown "too fast" and ventured into various retail formats, including e-commerce, and some of its brick-and-mortar stores have clocked losses over years leading to less than ideal earnings per square feet of , said person.

Reliance Retail's empire includes fashion, grocery and electronic stores, and it has ventured into e-commerce in recent years to take on Amazon AMZN.O. It is w expanding into faster deliveries to tap boom in quick commerce - a new shopping r where products are being delivered in 10 minutes.

It reported a 1.1 per cent year-on-year decline in sales in July-September, its first quarterly sales fall in at least three years, as competition from quick commerce startups is seen eating into its share of supermarket sales.

Bernstein last year valued business, which owns toy retailer Hamleys and has forged partnerships in India with brands such as Jimmy Choo, Marks & Spencer and Pret A Manger, at $112 billion.

Jio Platforms, which houses telecom and digital businesses, is 33 per cent owned by foreign investors after raising $17.84 billion in recent years. Reliance Retail sold around a 12 per cent stake to foreign investors over same period and raised $7.44 billion.