Reliance Jio IPO announced: 5 things investors need to watch out for

Reliance Jio IPO announced: 5 things investors need to watch out for

Billionaire Mukesh Ambani has officially announced that the much-awaited stock market launch (IPO) for his company, Reliance Jio, will happen in the first half of 2026. If things go as expected, this could be the biggest IPO in India’s history. Ambani, speaking at the AGM, said he is confident that this will be a great opportunity for all investors.

Here are things investors need to keep an eye on:

1) The size of the IPO

According to a Bloomberg report earlier, the company was said to be planning an IPO worth 52,200 crore, making it bigger than Hyundai India’s Rs 28,000 crore IPO.

Read More: RIL AGM 2025: Mukesh Ambani announces Reliance Jio IPO to hit Dalal Street in first half of 2026

This large size is important because it could be a challenge for the market to handle. A smaller IPO might be easier for the market to absorb.

2) Valuations

The IPO was earlier reported to be delayed as Jio wanted to get a higher valuation before going public. It focused on increasing its customer base and growing other digital services. This strategic delay means the company is coming to the market in a stronger position, aiming to give investors a more valuable opportunity.Sebi recently issued a consultation paper proposing that companies with post-IPO market capitalisation above Rs 5 lakh crore would need to float just 2.5% of their equity, down from the current 5%. For Jio, valued by Citi at over $120 billion (Rs 10.4 lakh crore), this regulatory shift could be a game-changer.

3) What’s in it for investors

The Jio IPO is a chance for some of its earliest and biggest investors, like Meta (Facebook) and Google, to sell their shares and make a profit. But for new, regular investors, this IPO offers a way to directly own a piece of a company that is at the center of India’s digital future.

Also, this IPO could unlock value for RIL shareholders as they might get a holding company discount.

4) IPO to fuel Jio’s ambitious plans

Jio isn’t stopping at just phones. The company has big plans for the future, including connecting every Indian with mobile and home internet, equipping every home with new services like Jio Smart Home and JioTV+, starting an AI (Artificial Intelligence) revolution in India with the motto “AI Everywhere for Everyone.” The IPO could provide funds for the company to meet its ambitious plans.

5) Jio Financials

Jio has had strong growth in financials over the past few quarters. The company reported a 25% increase in profit in the first quarter and a 19% growth in revenue compared to the previous year. A key indicator of a telecom company’s health, Average Revenue Per User (ARPU), also improved significantly to Rs 208.8. This financial performance is the foundation of the company’s promise to investors.

“I am happy to share that Jio has scaled newer heights during the quarter, including crossing 200 million 5G subscribers and 20 million home connections,” said Mukesh Ambani.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)

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