Reliance Jio to File DRHP Today: Aiming for India’s Largest Ever IPO

Reliance Industries Chairman Mukesh Ambani has officially announced that the company’s board has approved the Draft Red Herring Prospectus (DRHP) for Reliance Jio, with the filing set for submission to SEBI today. This landmark move signals the beginning of the public listing process for India's telecom giant, a moment Ambani described as "deeply emotional" during the company's Annual General Meeting (AGM).

A Massive Fresh Issue to Rewrite IPO History

The proposed IPO is structured as a fresh issue of up to 27 crore shares, each with a face value of Rs 10. This is a strategic shift from the company's earlier plans, which leaned toward an offer-for-sale (OFS) model. By opting for a fresh issue, the capital raised will flow directly into Jio’s business to fuel future growth, rather than providing an exit for existing shareholders.

If the valuation holds, this offering is poised to become India's largest-ever IPO, potentially eclipsing the scale of the NSE's nearly Rs 30,000 crore offering and Hyundai Motor India's Rs 27,870 crore public issue. This milestone comes nearly six years after Jio Platforms successfully raised over Rs 1.5 lakh crore from a cohort of global strategic investors including Google, Meta, and KKR.

Robust Financials and Rising ARPU Drive Investor Interest

The timing of the IPO is backed by strong operational momentum. For the March quarter of FY26, Reliance Jio reported a 13% year-on-year rise in operating revenue, reaching Rs 44,928 crore, while net profit also climbed 13% to Rs 7,935 crore. Notably, EBITDA grew by 18%, supported by an expansion in operating margins by 230 basis points.

Key performance indicators that will likely attract institutional investors include:

  • ARPU Growth: Average Revenue Per User (ARPU) has improved to Rs 214, driven by tariff hikes and better subscriber quality.
  • Data Dominance: Data consumption remains high at 42.3 GB per user per month, with overall data traffic rising 35% year-on-year.
  • Subscriber Base: Jio currently serves more than 500 million subscribers with nationwide 5G coverage.

Strategic Shift and Market Sentiment

The road to this filing has not been without hurdles. The IPO timeline was previously delayed due to market volatility and geopolitical tensions in West Asia, leading the company to revisit its strategy. However, analysts suggest that the shift toward a "fresh issue" structure improves investor perception, as it signals the infusion of growth capital into the digital ecosystem.

Ambani emphasized that the listing will serve as a global testament to India's ability to build technology companies of massive scale and capability. As Jio prepares to list, its expanding ecosystem—spanning broadband, cloud services, and enterprise connectivity—positions it as a cornerstone of India's digital economy.

Key Takeaways

  • Record-Breaking Scale: The Jio IPO is expected to surpass previous major listings like Hyundai Motor India to become India's largest-ever public offering.
  • Growth-Centric Structure: By opting for a fresh issue of 27 crore shares, the company is prioritizing direct capital infusion into its business over shareholder liquidity.
  • Strong Fundamentals: Robust revenue growth (up 13%) and rising ARPU (Rs 214) provide a strong financial cushion for the upcoming listing.