The biggest event in Indian capital markets history is taking shape for 2026.
Reliance Jio Platforms, the digital arm of Mukesh Ambani’s empire, is considering floating just 2.5% of the company in an IPO that could value the telecom giant between $180 billion and $240 billion.
💰 THE DEAL METRICS:
- Target Float: 2.5% (Pending regulatory approval).
- Implied Raise: >$4.5 Billion (Dwarfing Hyundai India’s 2024 record of $3.3B).
- Valuation Spread:
- Jefferies Estimate (Nov): $180 Billion.
- Banker Pitches: $200 Billion – $240 Billion.
📜 THE REGULATORY CATALYST: Reliance is betting on a specific policy change.
- The Rule: Current SEBI norms typically require a 5% minimum float for large issuers.
- The Pivot: A proposal to lower this to 2.5% is awaiting Finance Ministry approval.
- The Strategy: Listing a smaller slice creates “pricing tension” (scarcity premium) while allowing Ambani to retain maximum control as the company pivots from pure Telecom to AI/Digital Services.
🏦 THE PLAYERS:
- Advisors: Bankers from Morgan Stanley and Kotak are reportedly already drafting the prospectus.
- The Exits: The IPO is expected to provide liquidity for early foreign backers like KKR, General Atlantic, and Silver Lake.
💡 ANALYST TAKEAWAY: This is more than a telecom listing; it’s a proxy for India’s digital economy. By delaying until 2026, Ambani has allowed Jio to diversify into AI (via its Nvidia partnership) to justify a tech-multiple valuation rather than a utility-multiple. However, the 2.5% float indicates they are confident demand will outstrip supply, potentially creating a massive “pop” on debut if the scarcity strategy works.
👇 Emerging Market Investors: At $200B+, does Jio command a premium over global telecom peers, or is the “India Growth Story” fully priced in?