Jio IPO: What the Listing Means for 44 Lakh Reliance Industries Shareholders

Reliance Industries is planning a blockbuster IPO for Jio Platforms, valued at up to ₹13.5 lakh crore. While this is set to be India’s biggest-ever listing, 44 lakh RIL shareholders may not receive direct Jio shares, unlike in previous demergers.

Jio IPO and Its Indirect Benefit to RIL Shareholders

Jio Platforms is preparing for a historic IPO scheduled for the first half of 2026. Reliance Industries Limited (RIL) owns 66.3% of Jio Platforms. However, unlike the 2023 spin-off of Jio Financial Services, where shareholders got direct ownership, the upcoming IPO will be via sale to public investors. This means existing RIL shareholders will not get direct Jio shares. Instead, their benefit will come from RIL’s continued holding in Jio, which may be subject to a holding company discount that typically affects valuations.

Structure and Potential Value Unlocking

This IPO route helps RIL retain control over Jio, ensuring Jio remains a subsidiary post listing. Jio’s estimated IPO valuation ranges between ₹12.1 lakh crore and ₹13.5 lakh crore, with projections for up to ₹67,500 crore raised if only 5% stake is offloaded. Although this method is less value-creating for individual shareholders in the near term, broader sectoral re-ratings and RIL’s embedded stake in a premium telecom asset offer long-term gain prospects.

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Strong Financial Metrics Boost IPO Sentiment

Jio Platforms posted strong financials in Q1 FY26, with net profit up 25% YoY to ₹7,110 crore and total revenue reaching ₹41,054 crore. With over 500 million subscribers and 220 million 5G users, Jio is set to become a major draw for investors. The listing could position Jio among India’s top 5 most valuable companies by market capitalisation.

Conclusion

While RIL shareholders will not receive Jio shares directly, the listing’s sheer scale and potential telecom sector growth could still drive meaningful value for them. The IPO will be watched closely as India’s largest, possibly reshaping capital markets dynamics and boosting RIL's long-term market perception.

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