MUMBAI: Despite many companies putting their IPO plans on the backburner citing the jittery market conditions since the Iran war, Mukesh Ambani is going ahead with the listing plan of his telecom asset Reliance Jio Platforms. More than 15 merchant bankers have been hired to manage the process that would be the biggest IPO ever from India Inc with the issue size likely topping $4 billion.
At the last AGM, Reliance chairman Ambani had said he would take Jio, which is the largest telecom player by customer base, revenue and profit, public by the middle of 2026.
After the Iran war spooked markets, ripping off Rs 34 trillion investor wealth in the first two weeks, companies like Phonepe said they are putting off the plan till the market sentiment and liquidity improve. Many other companies are also silently delaying the roadshows.
The Walmart-owned Phonepe was to hit the market this month with a Rs 12,000 crore issue, making it the second largest from the fintech space after Paytm’s Rs 18,300 crore issue earlier.
The IPO will most likely be an offer-for-sale and may value the company at $170 billion.
Jio’s IPO syndicate involves over 15 advisors including big names such as Wall Street giants Citigroup, JPMorgan, Goldman Sachs, Morgan Stanley and Bank of America, as well as domestic investment banks like Axis Capital, ICICI Securities, IIFL, and Kotak Mahindra Capital, a source told TNIE Wednesday.
A Reliance spokesman refused to comment, saying the matter is not public yet.
Last week, the NSE had hired as many 20 i-bankers and eight law firms among other market intermediaries for the Rs 23,000-crore share sale, making it the largest IPO syndicate on record. The previous record was ICICI Prudential AMC’s hiring 18 i-bankers last year for its OFS. At over 15, the Jio line-up is the third largest on record.
Many analysts are expecting Jio to dilute only the minimum 2.5% stake through the OFS utilizing the new regulatory framework for large listings.
The IPO is part of Ambani's plan to unlock value from the digital and telecom business, which includes Jio's mobile service, AI, and broadband services.
Over the past six years, Jio has diversified into artificial intelligence and raised funds from well-known investors. While Reliance Industries owns a little over 66% of Jio, the remaining stake is held by strategic investors and private equity giants like Meta (9.99%), Google (7.7%), and others like Silver Lake, KKR, General Atlantic, TPG, L Catterton, Qualcomm Ventures, and Intel Capital.
A clutch of sovereign wealth funds such as the Mubadala Investment Company of Abu Dhabi, Abu Dhabi Investment Authority, Saudi Arabia’s Public Investment Fund are also its investors.