Mukesh Ambani’s Reliance Jio IPO reportedly delayed by regulatory limbo

The delays by the Indian government in finalizing modifications to listing regulations are jeopardizing Mukesh Ambani, Chairman and Managing Director of Reliance Industries Ltd (RIL) in achieving the timeline set for Jio Platforms Ltd.'s initial public offering, according to a report by Bloomberg. Reliance is currently awaiting the government to officially implement the changes approved by the regulator so it can formally appoint bankers and submit a draft IPO prospectus, as reported by Bloomberg citing its sources. The company’s new goal is to file the draft prospectus prior to April, contingent on the government’s notification, as noted by Bloomberg. Jio, the owner of the largest wireless network in India, represents one of the most valuable assets in Ambani’s business empire, and its initial public offering — marking the first significant listing of a Reliance division in nearly two decades — has the potential to be the largest in the country’s history. Investment bankers have suggested a valuation of up to $170 billion for the firm, presenting a unique chance for investors to engage with one of the most remarkable growth narratives of the last ten years, as reported by Bloomberg. In August, Ambani stated that Reliance plans to list Jio in the first half of 2026, a goal he initially mentioned in 2019 — at that time, he projected a five-year timeline. A valuation at the higher end could generate around $4.3 billion by selling a minimal stake, positioning the company among India’s largest by market capitalization. Investments exceeding $10 billion in Jio were announced by Meta Platforms Inc. and Alphabet Inc. in 2020, according to a Bloomberg report. Discussions are currently underway and specifics regarding the offering, including timing and size, might change, the sources indicated. Reliance Industries chose not to promptly comment. Representatives from the finance ministry also did not immediately reply to requests for comments, as noted by Bloomberg in its report. SEBI regulations In September, the Securities and Exchange Board of India (SEBI) approved changes to its regulations, permitting companies with a post-issue market capitalization that exceeds 5 trillion rupees ($55 billion) to offer as little as 2.5% in an IPO, compared to the current minimum requirement of 5%. This alteration could potentially pave the way for major listings like Jio and the National Stock Exchange of India, although it has not yet received final approval from the government. The reason for the delay remains uncertain, and there are no indications that it specifically targets the Jio IPO, according to a report by Bloomberg. The subsequent phase, which may typically take several months due to governmental discussions, involves the finance ministry officially integrating the changes and publishing them in the Official Gazette, according to Sonam Chandwani, managing partner at KS Legal & Associates, as reported by Bloomberg. In the meantime, NSE is moving forward with plans to secure up to $2.5 billion through an IPO. Last month, the company reached out to banks to propose their roles in the offering. These two share issuances would offer a much-needed boost to the Indian market, which has faced challenges in initiating listings in 2026 following two years of record fundraising. Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.