Jio Platforms Ltd. intends to sell a 2.5% stake in its planned IPO for 2026, potentially establishing it as India’s largest IPO at over $4 billion. Led by Mukesh Ambani, the parent company of Reliance Jio, which boasts over 500 million users, this IPO is the most anticipated in the country for the year.
In November, Jefferies estimated Reliance Jio’s valuation at $180 billion, meaning a 2.5% stake sale could generate $4.5 billion, surpassing Hyundai Motor India’s $3.3 billion IPO. Over six years, Jio has diversified into AI and attracted investments from KKR, General Atlantic, Silver Lake, and the Abu Dhabi Investment Authority.
Reliance plans to list just 2.5% of Jio’s shares due to the company’s large size, despite an awaiting approval from India’s finance ministry for a proposal to reduce minimum share sales for large IPOs from 5% to 2.5%.
The current strategy for Reliance’s IPO involves listing 2.5% if legal changes occur, as this may create better pricing conditions. Bankers estimate the business’s valuation between $200 billion and $240 billion, but Reliance has not confirmed any specific figure. Their response to inquiries from Reuters remains unreported. The nature of the Jio IPO is still under consideration, with decisions pending on whether it will be an offer-for-sale, involving existing shareholders selling their shares, or if it will also include the issuance of new stock, similar to Hyundai’s India IPO, which was an offer-for-sale that did not generate new capital.
The Jio listing is poised to further invigorate India’s IPO market, which ranked second globally in primary equity issuance in 2025, raising $21.6 billion by December 18. Initially planned for 2019, the listing has been postponed to the first half of 2026, contingent on market conditions, as the company seeks a higher valuation through expansions into niche digital sectors. Additionally, Reliance Jio is preparing for competition with Elon Musk’s upcoming Starlink internet service and has formed a partnership with Nvidia to create AI infrastructure.
Bankers from Morgan Stanley and India’s Kotak are collaborating with Reliance on IPO documentation, despite formal appointments not yet being made. Reliance is awaiting clearance on the 2.5% public float rule from the finance ministry, and the sale size may change. Many foreign investors who invested in Reliance recently are expected to exit through the IPO. Morgan Stanley and Kotak have not commented on the matter.