Upcoming IPOs of Reliance Group

In 2023, a total of 243 companies were listed on Indian bourses, the highest annual tally in at least six years.

The expected boom comes as companies look to take advantage of the country's robust economic growth, young population and the government's increased focus on digitisation.

Amid a global slowdown in IPO activity, India emerged as a standout performer for initial public offerings in 2023. The country secured the third position globally in terms of IPO proceeds, signalling a notable shift in capital sources and the maturation of the local market.

The momentum continues with significant players joining the IPO bandwagon, with major players like the Tata Group recently announcing plans to list five of their companies, contributing to the prevailing market optimism.

Furthermore, another major conglomerate, Reliance Industries, is positioned as one of the key players for one of India's busiest years for IPOs.

The company is planning to come out with two IPOs this year.

Here's everything you need to know about them.

#1 Reliance Retail Ventures

First on the list is Reliance Retail Ventures.

The company is the only Indian company among the global top 100 retailers. It is the largest in India by sales and profit. It is almost 3.5x the value of the largest listed retail chain, Avenue Supermarts, which owns DMart, and 2.5 times the combined scale of the next three Indian retailers.

Reliance Retail forayed into the personal care categories in the fast-moving consumer goods (FMCG) space and also became the official retailer of GAP in India to serve the mid-premium segment.

During the fiscal year 2023, Reliance Retail registered a footfall of 780 million, which led to its customer base growing to 249 million during the year.

In 2023, Reliance Retail entered the beauty segment by launching the "Tira" digital platform and opening its flagship store in Mumbai. The business also expanded its product basket through acquisitions and partnerships at both local and global levels, like Metro and Campa Cola, among others.

Following the launch of Sosyo and Campa Cola, Reliance Retail saw 11 times the growth in the first quarter of the current fiscal.

Further, the company announced the launch of its youth-focused fashion retail format, Yousta, with the opening of its first store in Hyderabad's Sarath City Mall.

This will be targeted at consumers in the age group of 15-25 years at affordable prices.

Investors await any updates on the timeline of the separate listing of Reliance Retail.

During the 2019 AGM, RIL said that it would list its telco and retail business in the next five years. With four years gone by, most investors expect an update on the timeline of potential IPOs.

#2 Reliance Jio Infocomm

Last on the list is Reliance Jio Infocomm.

Reliance Jio Infocomm provides wireless telecom products and services. The company offers voice, data, messaging services, and sells smartphones and hotspot devices.

Indian carrier Reliance Jio Infocomm is likely to make its initial public offering (IPO) in 2025, when global private equity firms may look to exit their investment in the company, according to media reports.

According to the report, investors, including Vista Equity Partners, KKR, PIF, Silver Lake, L Catterton, General Atlantic and TPG, had made investments in the domestic telecom operator in 2020.

KKR and Vista Equity Partners each own a 2.3% stake in Jio Platforms, while Silver Lake owns a 2% stake. General Atlantic owns a 1.3% stake in the operator, and TPG Capital owns nearly 1% of the telco.

Other major investors include Facebook (10%) and Google (7.7%). Reliance Industries currently holds a 67% stake in Jio Platforms, the holding company that owns Reliance Jio Infocomm.

Jio is currently pushing for a minimum tariff increase of 20%. The report noted that without such an increase in telecommunications tariffs, the valuation of the IPO would be affected.

Jio Platforms is valued at US$ 75 billion (bn). This valuation is expected to go up significantly after the much-anticipated tariff hike later this year.

Reliance Jio Infocomm recently completed the rollout of 5G technology in India. The operator has been rapidly expanding its 5G network using Standalone (SA) architecture since October 2022.

Reliance Jio had secured a mix of wireless spectrum for 5G across the 700 MHz, 3.5 GHz and 26 GHz bands. Jio is the only Indian operator with spectrum in the 700 MHz band.

Further, its 5G Fixed Wireless Access (FWA) service, dubbed JioAirFiber, will have pan-India coverage within the first half of 2024.

The carrier's 5G FWA service is already available in over 4,000 towns and cities across India.

The telco announced the launch of its 5G FWA service in eight cities across the country in September 2023. The service was initially launched in the cities of Ahmedabad, Bengaluru, Chennai, Delhi, Hyderabad, Kolkata, Mumbai and Pune.

Conclusion

Reliance boasts a strong track record of success across various sectors, suggesting potential for future growth. Participating in an IPO could offer early access to this potential, especially if the company being offered has promising prospects.

The company's name carries a strong reputation for innovation and long-term vision. This strong brand image adds an element of trust and stability to your investment.

Reliance Industries is an Indian multinational conglomerate. The company is a Fortune 500® company and largest Indian private sector corporation. Reliance is India's largest and most profitable private sector company.

Although Reliance Industries have always remained at the forefront of innovation, it does not mean Reliance stocks aren't vulnerable to macroeconomic conditions.

You should treat them like any other company when considering them from an investment perspective.

Remember, a fundamentally strong company has the potential to give good returns in the long run. Hence, it is better to carry out proper due diligence before investing in any stocks, including reliance Industries.

For more information on IPOs, check out the list of upcoming IPOs.

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