Mumbai: Mukesh Ambani has announced that Reliance Jio, the telecom unit of Reliance Industries, will launch its IPO next year. But that’s not all — Reliance is also preparing to list its retail business, making it the second major company from the group to hit the stock market soon.
Restructuring Retail Business Before Listing
According to a report by thehindubusinessline.com, Reliance has already started restructuring its retail business. In the recent AGM, the company demerged its FMCG division and Reliance Consumer Products, which will now become a separate subsidiary of Reliance Industries. The company is also closing down underperforming retail stores to improve financial results. The goal is to make Reliance Retail stronger so it can get a higher valuation during listing.
Retail IPO Likely in 2027
Though still in the early stages, Reliance Retail's IPO is expected to happen in 2027, one year after Jio's listing. The IPO will also give a profitable exit to major investors such as GIC (Singapore), Abu Dhabi Investment Authority, Qatar Investment Authority, KKR, TPG, Silver Lake, and others. Market experts believe this IPO could be worth up to USD 200 billion, making it India’s biggest-ever listing in corporate history.
Company Performance So Far
After demerging Reliance Consumer, the group will continue to operate brands like Reliance Smart, Freshpik, Reliance Digital, JioMart, Trends, 7-Eleven, and Reliance Jewels. The demerger is expected to be completed by the end of this month, pending regulatory approvals.
In FY 2025, Reliance Retail recorded USD 38.7 billion in revenue and USD 2.9 billion in operational profit. Its EBITDA margin stood at 8.6 percent, which slightly improved to 8.7 percent in the June quarter.
