Reliance Jio delays IPO plans to boost valuation

Analysts value the digital and telecom giant at over $100 billion, but the company aims to further grow its revenue, subscriber base, and digital offerings before listing.

About 80% of Jio’s $17.6 billion annual revenue comes from telecom arm Reliance Jio Infocomm, which has over 488 million users.

While recent tariff hikes caused some churn, the subscriber base is growing again. Jio is also expanding into AI, connected devices, and enterprise solutions and has partnered with Nvidia to build AI infrastructure.

The IPO delay comes amid intensifying competition, with Elon Musk's Starlink preparing to enter the Indian market. Despite no investment bank mandates yet, the listing—initially targeted for 2025—will now happen only after the business matures further.

Brokerages like IIFL Capital have trimmed profit forecasts and valuation estimates, citing higher costs and muted tariff hikes. However, Jefferies continues to value the company at $136 billion.

India’s IPO market, despite recent global volatility, remains strong. In 2024, it raised $20.5 billion, ranking second globally. Meanwhile, Reliance’s other IPO—Reliance Retail—is also delayed, likely until 2027–28, as operational challenges remain.

Over recent years, Ambani has raised $25 billion for digital, telecom, and retail arms from global investors like KKR, ADIA, and Silver Lake. “The investors are not upset... They know the money is sitting in front of them,” a source said.