Jio IPO strengthens Reliance’s financial flexibility; capex funding remains key
Benchmarks Nifty22,811.35-77.61FEATURED FUNDS★★★★★UTI Aggressive Hybrid Fund Regular Plan-Growth5Y Return8.7 % Invest NowFEATURED FUNDS★★★★★Motilal Oswal Midcap Fund Direct-Growth5Y Return18.39 % Invest NowEnter search…
Moody’s has termed Jio Platforms’ IPO credit positive for Reliance Industries, citing debt repayment and funding flexibility. The Rs 30,200 crore issue will support investments while helping manage leverage amid elevated capital expenditure.
Jio Platforms’ initial public offering (IPO) will strengthen Reliance Industries' (RIL) financial flexibility by helping reduce borrowings and supporting investments in telecommunications networks and digital services, Moody’s Ratings said, as the conglomerate prepares for a period of elevated capital expenditure.Moody’s analysts Kaustubh Chaubal, Justin Tan and Jacintha Poh described the IPO as credit positive for RIL, which carries a Baa1 rating with a stable outlook. The agency said the principal benefit would be greater funding flexibility rather than a material improvement in leverage or liquidity over the next 12 months.
“The IPO is credit positive for RIL because the proceeds will reduce debt and associated servicing costs,” Moody’s said, adding that the transaction would increase Jio Platforms’ capacity to fund investments in telecommunications networks and digital services without increasing leverage.
Jio Platforms, in which RIL holds a 66.4% stake, launched an IPO of up to 270 million new shares on October 21. The issue is scheduled to close on October 23 and is expected to raise around Rs 30,200 crore ($3.4 billion) at the top of the price band.
The company plans to use up to Rs 27,500 crore ($2.9 billion) of the proceeds to repay borrowings at its wholly owned subsidiary, Reliance Jio Infocomm Ltd. The offer consists entirely of fresh shares, with neither RIL nor its other existing shareholders selling shares.
Live Events
High capex keeps funding flexibility in focus
The listing comes as RIL prepares to sustain substantial investments across its businesses. Moody’s expects the conglomerate’s consolidated capital spending to remain high at around $15 billion annually over the next two years.
Equity funding at Jio Platforms will help finance part of this investment programme without increasing leverage. The listing will also diversify Jio Platforms’ funding sources and broaden its access to domestic and international capital for future investments, acquisitions and strategic partnerships.
Despite its substantial investment plans, RIL’s credit metrics remain strong. Moody’s forecasts its adjusted net debt/EBITDA ratio at around 1.0-1.2 times over the next two years, well below the agency’s 3.0-times downgrade threshold.
As of March 31, 2026, RIL held around Rs 2.5 lakh crore ($29.3 billion) in cash, cash equivalents and current investments, compared with Rs 1.1 lakh crore ($11.8 billion) in reported current borrowings, including lease liabilities.
Moody’s said RIL’s strong credit metrics and excellent liquidity continued to underpin its credit quality. The IPO’s principal credit benefit, therefore, lies in preserving financial flexibility through a period of heavy capital expenditure rather than delivering an immediate material improvement in leverage or liquidity.
Jio IPO attracts strong subscription demand
According to NSE data cited in a separate subscription update, Jio Platforms attracted bids worth Rs 90,500 crore on the first day, the highest aggregate bid value among Indian IPOs raising more than Rs 15,000 crore.
Including the reported Rs 2.5 lakh crore in anchor-book demand, total demand stood at Rs 3.4 lakh crore.
The reported bid value is substantially higher than the IPO’s expected proceeds of around Rs 30,200 crore at the top of the price band. However, subscription demand is distinct from the capital the company will actually raise and does not, by itself, establish whether the IPO valuation is justified.
For Moody’s, the key consideration is how the fresh equity capital will help Jio Platforms repay debt and finance future investments while limiting additional leverage.
ALSO READ: From Dhirubhai to Akash Ambani, Reliance made stocks popular with Indians
Jio remains central to Reliance’s earnings
Jio Platforms will remain strategically important to RIL after the listing. The digital services business contributed 37% of RIL’s consolidated EBITDA in the financial year ended March 31, 2026, and the parent will retain control following the IPO.
Jio Platforms operates India’s largest telecommunications business, with more than 524 million subscribers, according to Moody’s report.
The final offer structure will determine the extent of dilution in RIL’s ownership and the resulting increase in minority interests. The listing is also expected to enhance transparency and provide a clearer market valuation for RIL’s digital business.
For FY26, Moody’s estimates that RIL generated consolidated net revenue of around Rs 10.8 lakh crore and EBITDA of approximately Rs 2.1 lakh crore. Its businesses span oil-to-chemicals, digital services, retail, media and entertainment, upstream oil and gas, and new energy.
Disclosure: This article has been written by Kumar Gaurav, who is not a Sebi-registered Research Analyst or an Investment Adviser. Gaurav and their ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective Sebi-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here
Add as a Reliable and Trusted News Source Add Now!
(You can now subscribe to our ETMarkets WhatsApp channel)
Read More News onreliance industriesJio Platforms IPO 2026Reliance Industries debt reductionMoody’s credit rating outlookJio IPO subscription demand200 crore IPOJio Platforms NFO datesReliance Industries capital expenditureJio Infocomm debt repaymentJio Platforms financial performance
(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)
Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
...moreless(You can now subscribe to our ETMarkets WhatsApp channel)
Read More News onreliance industriesJio Platforms IPO 2026Reliance Industries debt reductionMoody’s credit rating outlookJio IPO subscription demand200 crore IPOJio Platforms NFO datesReliance Industries capital expenditureJio Infocomm debt repaymentJio Platforms financial performance
(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)
Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
...morelessPrime ExclusivesInvestment IdeasStock Report PlusePaperWealth EditionThe global business of promising more
One company, 2 words. Bond yield and CDS: Will they decide the fate of global markets?
Business of Odd Things: Inside an industry that farms fish that nobody is meant to eat
War's second-order effects are becoming visible in critical sectors
US mid-term elections – Part 2: What does it mean for Trump to lose control of Congress?
Homebuyers wait as NCLT panel picks holes in unfinished Jaypee projects
- 1
- 2
- 3
& personalised newslettersLogin NowUnlimited AccessStarting @ Rs120/monthGet access to exclusive stories, expert opinions &
in-depth stock reportsSubscribe NowET
Unlock Access to All Exclusives with ETPrime FREE TRIAL
15 Days Free: Unlock All ETPrime Exclusives, Market Tools & ePapers
Trial offer expiring in00 : 05 : 00
I'd rather pay ₹2599 nowUh-oh! This is an exclusive story available for selected readers only.
Worry not. You’re just a step away.
Prime Account Detected!
It seems like you're already an ETPrime member with
Login using your ET Prime credentials to enjoy all member benefits
Log out of your current logged-in account and log in again using your ET Prime credentials to enjoy all member benefits.
Unlock ETPrime's Exclusive Stories Today!
Big Price Drop! Flat 40% Off
Student Only OfferAlready a Member? Sign In nowAlready a Member? Sign In nowAlready a Member? Sign In nowOffer Exclusively For You
Save up to Rs. 700/-
ON ET PRIME MEMBERSHIP
Avail OfferOffer Exclusively For You
Get 1 Year Free
With 1 and 2-Year ET prime membership
Avail OfferOffer Exclusively For You
Get 1 Year Free
With 1 and 2-Year ET prime membership
Avail OfferOffer Exclusively For You
Get Flat 40% Off
Then ₹ 1749 for 1 year
Avail OfferOffer Exclusively For You
ET Prime at ₹ 49 for 1 month
Then ₹ 1749 for 1 year
Avail OfferSpecial Offer
Get flat 40% off on ETPrime
Avail OfferAvail OfferClaim NowAlready a Member? Sign In nowNeed Assistance?
Connect with an ETPrime expert for personalized support and guidance
+91 9484700004'; }); } if(listing) { var h3 = "You tried reading " + listArr.length + " locked stories in the past " + threshold + " days.", h4 = "Become an ET Prime member and don't miss out on these exclusive stories."; var html = '' + h3 + '
' + h4 + '
- ' + listing + '
What’s Included with
ETPrime Membership
1Exclusive Insights That Matter
Uncover the truth with our investigative stories
Make strategic moves using the real-world case studies
Read industry-specific stories to identify emerging trends
Spot opportunities with in-depth insights that matter
Trump temper on H-1B visas is forcing Indians to do these things to stay put in US
What Adani’s US indictment means for India Inc’s overseas fundraising
Why veterans like Reliance, L&T are on acquisition spree? Aswath Damodaran has an answer.
Will China’s dollar bond sale in Saudi Arabia trump the US in financial world?
Huawei launches its own OS to compete with Google and Apple. But can it win beyond China?
The problem with lab grown diamonds
Why a falling rupee is a better option for the economy
A list of top 20 momentum stocks that have delivered massive returns in one year
2Invest Wisely With Smart Market Tools & Investment Ideas
Alpha Trade
Get daily trade ideas from SEBI-registered research analysts.
Investment Ideas
Grow your wealth with stock ideas & sectoral trends.
Stock Reports Plus
All-in-one stock research with Stock Score, peer comparison & key signals.
BigBull Portfolio
Get to know where the market bulls are investing to identify the right stocks.
Stock Analyzer
Check the score based on the company's fundamentals, solvency, growth, risk & ownership to decide the right stocks.
Market Mood
Analyze the market sentiments & identify the trend reversal for strategic decisions.
Stock Talk Live at 9 AM Daily
Ask your stock queries & get assured replies by ET appointed, SEBI registered experts.
3Stay informed anytime, anywhere with ET ePaper
ePaper - Print View
Read the PDF version of ET newspaper. Download & access it offline anytime.
ePaper - Digital View
Read your daily newspaper in Digital View & get it delivered to your inbox everyday.
Wealth Edition
Manage your money efficiently with this weekly money management guide.
TOI ePaper
Read the PDF version of TOI newspaper. Download & access it offline anytime.
Deep Explainers
Explore the In-depth explanation of complex topics for everyday life decisions.
Health+ Stories
Get fitter with daily health insights committed to your well-being.
Personal Finance+ Stories
Manage your wealth better with in-depth insights & updates on finance.
5Enjoy Complimentary Subscriptions From Top Brands
Stream new documentaries from all across the world every day.
Stories you might be interested in
Figures reflect the source report and its stated period. This article is for information and is not investment advice.
