Jio IPO Takes Shape as Reliance Eyes $4B With 2.5% Float

Reliance Industries Ltd. is preparing what could become India’s largest-ever public listing, but with an unusually cautious approach. Its digital arm, Jio Platforms, is reportedly exploring a public issue of around $4 billion, achieved by selling just 2.5% of its equity, according to people familiar with the matter.

The move reflects both the sheer scale of Jio Platforms and Reliance’s intent to preserve control while testing public market appetite. Rather than a broad dilution, the company is considering a tight float, one that could intensify demand and sharpen price discovery if regulatory approvals fall into place.

At the centre of the decision is a pending proposal to lower the minimum public shareholding requirement for large IPOs from 5% to 2.5%, a change that would directly enable Reliance’s preferred structure.

Valuation Debate Shapes the Offering

Investment bankers pitching the deal have floated a wide valuation range for Jio Platforms, between $200 billion and $240 billion, though Reliance has yet to settle on a final number. A more conservative benchmark comes from Jefferies, which valued Jio at $180 billion late last year. At that level, even a 2.5% stake sale would raise approximately $4.5 billion.

This valuation tension underscores the strategic calculus at play. Jio Platforms is no longer viewed solely as a telecom asset. Over the past few years, it has evolved into a broader digital platform spanning connectivity, enterprise services, and emerging technology bets, prompting Reliance to wait for a valuation that reflects that shift.

IPO Structure Still Open

It remains unclear whether the proposed IPO will be structured entirely as an offer for sale (OFS) or include a fresh issue of shares. Sources suggest Reliance is aware that several global investors who backed Jio in earlier funding rounds may look to partially exit through the listing.

While formal mandates are yet to be announced, Morgan Stanley and Kotak Investment Banking are understood to be working with Reliance on early-stage drafting of IPO documentation, an indication that preparatory work is already underway, even as regulatory clarity is awaited.

Timing Tied to Regulation and Readiness

Reliance chairman Mukesh Ambani, chairman and managing director of Reliance Industries Ltd, had earlier indicated that Jio’s listing was targeted for the first half of 2026. That timeline now appears closely linked to regulatory developments and market conditions.

Ambani first spoke publicly about listing Jio back in 2019, with an initial five-year horizon. The delay since then reflects a deliberate strategy: expanding Jio Platforms beyond telecom into multiple digital adjacencies before stepping into the public markets.

Financial Momentum Ahead of Listing

As Reliance prepares for the potential IPO, Jio Platforms’ financial performance continues to show steady momentum. In Q2 FY26, the company reported a 13% year-on-year increase in net profit to ₹7,379 crore, while operating revenue rose 15% to ₹36,332 crore.

These numbers add weight to the IPO narrative, offering investors visibility into a business that is scaling profitably while still investing in long-term digital infrastructure.

A Jio Platforms listing would not only reset benchmarks for India’s IPO market but also serve as a signal of how mature digital infrastructure businesses are valued in public markets. By opting for a smaller float, Reliance appears focused on scarcity-led pricing rather than headline dilution.

For India’s capital markets, the deal could redefine how mega digital platforms transition from private capital to public ownership: slowly, selectively, and on their own terms.