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The Next Big IPO – Will it be Reliance Jio and Reliance Retail Ventures?

The IPO of Life Insurance Corporation (LIC) has just closed after getting very satisfactory participation from all the market players. Now, there is news about even bigger IPOs than LIC. It would be none other than Mukesh Ambani led Reliance Industries which is supposed to become the biggest IPO in Indian history.

Reliance Industries Chairman Mukesh Ambani has set in motion the process for the launch of two of India’s biggest IPOs by his companies, RIL subsidiary Reliance Retail Ventures (RRVL) and Reliance Jio Platform (RJPL) which is a telecom firm.  Each company is likely to raise ₹50,000-75,000 crore ($6.5 billion to $10 billion) in the stake sale assuming that promoters dilute at least 10 per cent of their holdings.

As of now, Paytm IPO in 2021 is the largest ever IPO in India at Rs 18,300 crore. The second biggest is Coal India in 2010 at nearly Rs 15,500 crore and the third biggest is Reliance Power in 2008 at Rs 11,700 crore.

Presently the LIC IPO is expected to eclipse all previous records and will become the biggest-ever public offer in the history of the country. The government is expecting to earn around Rs 21,000 crore through the LIC IPO. However, if the planned numbers of Ambani IPOs are achieved, then both these public offers would be the biggest-ever IPOs in India. Reliance Jio may also be listed in the US on the Nasdaq platform, which is the world’s largest marketplace for tech giants.

Both RRVL and RJPL are expected to file the prospectus with market regulators once the dust over the Russia-Ukraine conflict settles. The expectation is to launch the RRVL IPO by around December 2022, followed by RJPL. In 2020, RJPL sold a 33 per cent stake to 13 investors, including Facebook and Google, a part of which could be offered in the IPO by them.