RIL's Jio Platforms ready with DRHP; 2.5% stake may be offloaded via OFS

Mukesh Ambani-led Jio, which entered the telecom sector as a disruptor in 2016, is going for an IPO under the leadership of his eldest son, Akash, in 2026. In 2022, Akash took charge of Jio as chairman after Mukesh Ambani stepped down in a clear sign of succession planning.

It is learnt that 2.5 per cent of the equity in Jio Platforms will be offloaded through the OFS (offer for sale) route — meant for secondary share sale.

While the valuation of the company at the time of listing, which could take some months, will depend on various factors including the market condition, RIL is considering a ballpark range of $125 billion or thereabouts at present. At this valuation, the Jio IPO size could be at over $3 billion, making it the biggest in India so far. The Life Insurance Corporation (LIC) IPO in May 2022 was for $2.5 billion and Hyundai’s in October 2024 stood at $2.97 billion.

RIL is unlikely to shed any stake and the company is not looking to raise fresh capital during the IPO. Some of the existing investors in the company may divest their shares. There will be gains for shareholders on listing, according to a source.

Along with Akash Ambani, chairman of Reliance Jio, the team that’s steering the conglomerate’s first major IPO in some 20 years includes chief financial officer (CFO) Saurabh Sancheti, managing director Pankaj Pawar and head of strategy Anshuman Thakur. A battery of 17 investment bankers would be seen backing the mega IPO.

Reliance Jio’s IPO readiness follows a recent finance ministry circular relaxing the IPO rules. Now, companies with a post-issue market value exceeding Rs 5 trillion can dilute a minimum of 2.5 per cent equity, down from 5 per cent earlier.

In India, Jio is the largest telco at over 491 million wireless. Its closest rival, Sunil Bharti-led Bharti Airtel is at 467 million mobile subscribers. The average revenue per user (ARPU), which is a profitability benchmark for a telco, is pegged at Rs 213.7 a month per user for Jio against Rs 259 for Airtel.