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Reliance Industries, the Indian conglomerate led by Mukesh Ambani, is gearing up for a significant move in the financial market. According to media reports, the company is planning to launch an initial public offering (IPO) for its telecom arm, Jio, in 2025. However, the IPO for its retail division is expected to be delayed until a later date. This strategic decision reflects Reliance's focus on solidifying its position in the telecom sector while addressing internal challenges within its retail operations.
Sources familiar with the matter revealed that Reliance has finalized its plans for the Jio IPO, aiming for a listing in Mumbai next year. Analysts estimate the value of Jio to be over $100 billion, making it a potential powerhouse in the stock market. The decision to prioritize the Jio IPO suggests that Reliance believes it has achieved a stable business model and revenue stream for its telecom arm, demonstrating confidence in its future growth prospects.
In contrast, the retail business IPO is not anticipated until after 2025. Reliance has acknowledged the need to address certain internal business and operational challenges within its retail division before pursuing a public listing. This strategic move reflects the company's commitment to ensuring that its retail business is adequately prepared for the demands of the stock market.
The planned IPOs are a continuation of Mukesh Ambani's vision to expand Reliance's presence in various sectors. In 2019, he announced that both Jio and Reliance Retail aimed to go public within five years. While the timeline for the retail IPO has been adjusted, the upcoming Jio IPO marks a significant milestone in Reliance's strategic journey. This move is expected to generate significant capital for Reliance, enabling further investments and growth in its various business ventures.
The news of the Jio IPO comes at a time when the company is reporting strong financial results. Reliance Jio's September quarter earnings surpassed analyst expectations across key metrics, including net profit, EBITDA, and average revenue per user (ARPU). This strong performance highlights the company's continued dominance in the Indian telecom market, making it an attractive prospect for investors.
Source: Reliance Jio IPO may hit Indian market in 2025: Report