MUMBAI: While discussions about the initial public offerings (IPOs) of Jio and Reliance Retail gather momentum, some analysts believe that the private equity investors with significant (but not majority) stakes in these companies may hold substantial sway over the timing and structuring of these IPOs.
The reports have that Mukesh Ambani has targeted the listing of Jio, the telecom business from the group, valued at about $100 billion in 2025, and has plans to launch his retail unit’s IPO, maybe much later.
Both these business units have been built with the help of significant investments from outside investors, including reputed international private equity (PE) firms.
The success of these potential IPOs would certainly depend on the standing of these companies at the time of listing, in an ever-evolving market where it’s challenging to predict who the leaders and laggards will be in their respective segments as the IPO approaches.
The key to sustaining market leadership lies in management’s ability to adapt to the rapid changes and unpredictability of these sectors.
AI and satellite disruptions
Telecom is evolving through AI and potential satellite disruptions, while retail must adapt to quick-commerce demands.
‘The backing of private equity (PE) adds complexity, as existing investors may influence IPO timing and pricing. In a landscape where consumer behaviors and technology rapidly shift, Reliance’s success in both IPOs will depend on its ability to deliver not just scale, but also innovation and efficiency,” a market expert explained to businessbenchmark.news.
Investors, both institutional and retail, will weigh these factors as they consider whether Reliance’s dominance can withstand the challenges of tomorrow.
Private equity
In both the telecom and retail units, Ambani has attracted significant private equity investment over recent years.
Jio Platforms has raised over $17 billion from investors like KKR, Abu Dhabi Investment Authority (ADIA), and General Atlantic, who together hold a 33 per cent stake.
Similarly, Reliance Retail has sold around 12 per cent of its shares, raising $7.4 billion. This private equity backing not only bolsters each unit’s growth prospects but also sets the stage for IPOs that will likely focus on offers for sale (OFS), where existing shareholders can cash out.
Constantly evolving sectors
Telecom and retail are sectors in constant motion. Technology, consumer preferences, and competitive dynamics are continually evolving, making it difficult to predict long-term market leaders.
In the telecom space, for instance, Jio faces challenges like the potential entry of Elon Musk’s Starlink in India, which could disrupt traditional telecom models with satellite-based internet services.
Similarly, Jio’s partnerships with giants like Google and Meta underscore the importance of AI, digital infrastructure, and new service models in maintaining its lead.
Ambani’s foresight in building these alliances has bolstered Jio’s competitive edge, yet the pace of change in telecom demands continued adaptation.
Challenges for Reliance Retail
Reliance Retail, on the other hand, faces a different set of challenges. Rapid expansion across grocery, fashion, electronics, and e-commerce has made Reliance Retail the country’s largest player.
Yet, the company is reportedly dealing with inefficiencies in some physical stores and struggling to optimise earnings per square foot amid rising competition from quick-commerce startups.
This burgeoning quick-commerce trend – where consumers expect delivery in as little as 10 minutes – is also reshaping traditional retail models, demanding faster, tech-driven logistics that many traditional retailers are still adapting to.
