Reliance Industries Ltd’s (RIL) digital arm, Jio Platforms, is reportedly reconsidering its Initial Public Offering (IPO) structure. According to recent reports, the public issue may now exclusively consist of a fresh issuance of shares, a departure from earlier considerations that included an offer for sale (OFS).
Sources indicate that the shift in strategy stems from differing opinions among existing investors regarding the IPO’s pricing. A significant conflict has arisen between shareholders who wish to maximize the share price and the potential risks associated with an overly large issue that the market might struggle to absorb. Additionally, RIL itself reportedly views a very high price band as a potential risk, particularly concerning retail investors in the event of a listing day downturn.
To navigate these complexities and determine the optimal structure and pricing for the IPO, Jio Platforms has been engaged in discussions with a range of potential investors, including global technology firms, sovereign wealth funds, and private equity investors. This strategic dialogue aims to align stakeholder interests and market viability.
The path to a public listing for Jio Platforms has seen regulatory developments. Last year, RIL announced its IPO plans, but the company awaited final government approval for amendments to public shareholding norms for new issues. In March, the finance ministry eased these regulations for mega IPOs, thereby clearing a significant hurdle for Jio’s public offering.
Previously, market speculation suggested Jio was contemplating a $4 billion (approximately ₹36,100 crore) IPO, with about 2.5% of the company’s shares on offer. Investment bankers had pitched valuations ranging from $200 billion to $240 billion for Jio. However, the final figures and structure remain undecided.
Financially, Jio Platforms reported a 13% year-on-year increase in net profit for Q4 FY26, reaching ₹7,935 crore, up from ₹7,023 crore in the corresponding quarter of the previous fiscal year. Operating revenue also saw a 12.6% year-on-year rise, amounting to ₹38,259 crore during the same period.
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