Reliance Jio is reportedly preparing to file a draft prospectus for its expected $4 billion IPO, which could become India's biggest public offering. The move comes ahead of Mukesh Ambani's annual address to Reliance Industries shareholders.
Ambani had promised a Jio listing in the first half of the year, but the plan has been delayed amid a challenging period for Reliance, including a decline in profits and share price. The delayed IPO also comes against the backdrop of weaker equity markets and geopolitical tensions affecting investor sentiment.
Investment bankers had anticipated a strong IPO market this year, but major listings, including Reliance Jio and Walmart-owned PhonePe, have been delayed by volatility linked to the Middle East conflict. According to Prime Database, the value of Indian IPOs has fallen 39 per cent year-on-year to Rs 198 billion ($2.1 billion).
Analysts expect only a gradual recovery, while concerns over corporate governance and the dominance of family-run conglomerates continue to cloud sentiment. Critics argue that excessive promoter control limits shareholder influence and raises questions about succession and transparency.
With promoters controlling around half the shares on the National Stock Exchange and Jio expected to float only 2.5% of its equity, concerns have emerged over shareholder rights and market discipline. The rapid rise in retail investors has increased worries that ordinary savers have little influence over companies dominated by founding families.
Critics argue that weak corporate governance and concentrated ownership raise the cost of capital and make it harder for India to attract long-term foreign investment. They say stronger governance and broader participation are essential if India is to sustain growth and deepen its financial markets.
