Reliance Begins Informal Talks with Banks for Jio IPO, Loans in FY26

Reliance Industries Ltd. (RIL) has begun informal conversations with banks about a possible listing of its telecom arm, Reliance Jio Infocomm Ltd., Bloomberg reported citing people familiar with the matter. A formal process may start by the end of October, with investment bankers likely to be appointed in November. The size and timing of the issue are yet to be finalised.

Planned IPO Size

The company is considering an initial public offering worth about ₹52,200 crore, or $6 billion. If executed, this would be the largest IPO in India, surpassing Hyundai Motor India’s planned ₹28,000 crore issue. The proposed offering involves the sale of a 5% stake in Jio Infocomm.

Regulatory Approval

Reliance has approached the Securities and Exchange Board of India (SEBI) for an exemption from the existing rule that requires companies to maintain a 25% public float. The company has argued that a larger share sale may not be absorbed by the market. The exemption, if granted, would allow Reliance to proceed with a smaller float.

Timeline and Market Conditions

Sources indicated that the IPO could launch as early as next year, though the final decision will depend on market conditions. Preparations, including the hiring of advisors, are expected to begin in November.

Global Investors’ Exit Route

An offering would give investors such as Meta Platforms Inc. and Alphabet Inc.’s Google a chance to partially exit. Both companies, along with other global investors, had invested over $20 billion in Jio Platforms in 2020, valuing the unit at $58 billion. Current estimates place Jio’s valuation at over $100 billion.

Loans in FY26

Reports suggest Reliance may also raise loans in FY26 to support Jio’s growth and financing needs related to the IPO. The company had earlier delayed listing plans in 2024 to focus on expansion and revenue growth.

Read More: Jio Payments Bank’s ‘Savings Pro’ Offers 6.5% Interest; See How Jio Could Shake Up Indian Banking.

Conclusion

If completed, the Jio IPO would mark the largest fundraising exercise in Indian equity markets, providing Reliance with significant capital and offering global investors an exit option.

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