Reliance Jio Announces IPO for First Half of 2026

Reliance Jio, the telecom arm of Reliance Industries Limited (RIL), has formally announced its intention to go public in the first half of 2026. Chairman Mukesh Ambani made the announcement at the company’s 48th annual general meeting, describing the IPO as a landmark event that will 'unlock value' for RIL’s 4.4 million shareholders and provide global investors direct access to what is now the world’s second-largest telecom operator by subscribers.

Financial Scale and Market Impact

Jio’s IPO is poised to be India’s largest, with market analysts estimating the offering could raise between ₹30,000 crore and ₹67,500 crore, depending on the stake sold. Valuations for Jio range from $121 billion to $154 billion, with brokerages like Goldman Sachs and Motilal Oswal pegging its enterprise value at the upper end of this spectrum. The listing would surpass Hyundai Motor India’s 2024 IPO, currently the country’s largest. Jio’s financials underpin these projections: in FY25, it reported revenues of ₹1.28 lakh crore and EBITDA of ₹64,170 crore, backed by a subscriber base exceeding 500 million and leading the world’s fastest 5G rollout.

Strategic Ambitions and Risks

The IPO comes as Reliance pivots from its traditional oil and petrochemicals core to digital, retail, and AI-driven businesses. Jio’s future roadmap includes connecting every Indian household to mobile and broadband, launching smart home and enterprise digitization services, and expanding internationally. The company has already attracted over $20 billion in strategic investments from global giants like Meta (Facebook), Google, and sovereign wealth funds. However, analysts warn of execution risks: the telecom sector remains volatile, and the IPO’s structure could impose a holding company discount at the RIL level. There is also speculation that a tariff hike of up to 15% may precede the listing to boost average revenue per user and sustain premium valuations.

Shareholder and Market Dynamics

Unlike a full demerger, the listing structure means RIL shareholders may not receive direct shares in Jio, raising questions about the so-called holding company discount. Still, most brokerages believe the value unlocked by a direct market valuation of Jio will outweigh these concerns, especially as SEBI has proposed reducing the minimum public offer size for mega-IPOs. The listing will also provide an exit route for early investors, who collectively invested over $20 billion in Jio Platforms in 2020.

As Reliance orchestrates a generational leadership transition and seeks to anchor its future in technology and consumer services, the Jio IPO stands as both a financial milestone and a strategic inflection point for India’s digital economy.