Mother of all Indian IPOs may soon be launched in 2025. The new year is expected to have some big IPOs in the market, right from Tata Group's Tata Capital to LG Electronics and e-commerce giant Flipkart. However, the biggest ever IPO to arrive is neither of them but instead of India's richest man, Mukesh Ambani-backed telecom leader Reliance Jio who is expected to launch Rs 40,000 crore worth IPO, making it the highest ever in history.
Reliance Jio IPO:
As per media reports, Ambani has likely started the initial public offering (IPO) process for Reliance Jio Infocomm. This telecom's IPO is expected to be a mixture of fresh issue and offer for sale (OFS), with the option of pre-IPO placement.
Sources told the Hindu Business Line that Reliance Group was aiming for the issue to hit the market in the second half of the year and if it goes through as per schedule, it will be the largest IPO in India. The latest report stated that Reliance Jio's public offer could be worth Rs 35,000 crore to Rs 40,000 crore, which will this IPO the biggest ever in Indian history. Also, its valuation is expected to be around $120 billion.
This is higher estimate compared to Jefferies. Last year, in July month, the global brokerage had predicted a $112 billion valuation for Reliance Jio. Jefferies also believes that Reliance Jio could get listed in 2025.
In its report, Jefferies had said, that Reliance Jio is potentially planning India's largest IPO ever, expected to surpass LIC's record IPO size of over Rs 21,000 crore.
However, it needs to be noted that Hyundai Motor India, which is backed by South Korean automobile giant Hyundai has already surpassed LIC's IPO, and currently holds the title of largest IPO in India.
What is pre-IPO placement? As per ICICI Direct's website, Pre IPO investing refers to buying shares in a company before the issue opens. Pre-IPO investing in India is common among certain institutional investors, HNIs and family offices. The pre-IPO stake may be at a slightly higher price, but the allotment is assured and known in advance, so the investors don't have to worry about the uncertainty. Here let us look at what is pre IPO investing and the pros and cons of doing the same.
Notably, Reliance Industries, the parent company and India's largest company in terms of market share, and Mukesh Ambani have not made any official statement on the development. GoodReturns.I could not confirm the same.
Reliance Jio was launched in 2016 to empower every Indian with affordable access to a digital life-a gateway to the world-enabled by the world's best digital technologies. Today, Jio has not only ushered in a digital revolution across India, in how Indians connect to the world, but also in how India will go on to shape the digital future.
India's digital journey can be described in two eras: The era before Jio and the era after Jio. Before Jio's launch, India ranked 155th in mobile data consumption. In less than a year after Jio's launch, India catapulted to number ONE in the world in mobile broadband data consumption. Led by Jio, India has surpassed countries such as the USA and the UK in mobile data consumption.
Jio is the largest operator in India and the 2nd largest single-country operator in the world, offering services such as connectivity, fibre, mobile devices, apps, and business solutions.
List Of Biggest IPOs In India:
Currently, Hyundai Motor holds the title of the biggest Indian IPO with a public offer of Rs 27,870.16 crore. Earlier, the Life Insurance Corporation Of India (LIC) held this title with an IPO worth Rs 21,008.48 crore.
Other big IPOs in its history are --- Paytm worth Rs 18,300 crore, Coal India worth Rs 15,199.44 crore IPO, and GIC Re with Rs 11,175.84 crore IPO.
Some of the key benefits of investing in IPOs as per brokerage Share khan's website are:
1. Once a company goes public, the shares of the company can be traded on the stock market. This provides investors with the flexibility to buy or sell shares easily. This brings liquidity that can be beneficial for managing investments and accessing funds as needed, making it one of the key benefits of IPO.
2. Investing in IPOs is not something you have to do on your own. Many financial institutions and brokerage firms like ShareKhan offer research reports and investment recommendations on IPOs. Resources like these help you make informed decisions by providing insights into the company's financial health, growth potential, and industry trends.
3. IPOs often offer shares at a discount price compared to their market value. This allows investors to buy shares at a lower cost, potentially leading to higher returns if the company's stock performs well in the market.
4. Investing in IPOs can also offer tax benefits for investors. In India, long-term capital gains from equity investments, including IPOs, are taxed at a lower rate than short-term gains. This can improve an investor's net returns from such investments.
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