The Jio IPO will give Reliance Industries greater flexibility to fund investment and reduce debt, Moody’s Ratings said on October 21, 2026. The agency called the offering credit positive, while saying it would not materially improve the conglomerate’s leverage or liquidity over the next 12 months.
Key Takeaways
- Jio plans to direct up to Rs 27,500 crore of IPO proceeds toward its telecom subsidiary’s borrowings.
- Moody’s expects Reliance’s capital spending to remain around $15 billion annually over the next two years.
- The offering consists entirely of new shares, with Reliance and other existing shareholders not selling.
Table of Contents
- Jio IPO directs fresh capital toward debt repayment
- Heavy investment makes funding flexibility the priority
- Reliance will retain control of a major earnings business
- Conclusion
Jio IPO directs fresh capital toward debt repayment
Jio Platforms launched an offering of up to 270 million new shares on October 21, with subscriptions scheduled to close on October 23, 2026. It expects to raise approximately Rs 30,200 crore at the top of the price band.
The company plans to use up to Rs 27,500 crore to repay borrowings at its wholly owned subsidiary, Reliance Jio Infocomm. Because the transaction contains no sale by existing shareholders, the proceeds will go to the business rather than to its owners.
Moody’s said the repayment would reduce debt-servicing costs and increase Jio’s ability to invest in telecommunications networks and digital services without adding leverage. The planned repayment remains a use of proceeds, not a completed reduction in borrowings.
| Item | Details |
|---|---|
| Reliance credit rating | Moody’s Baa1, with a stable outlook |
| Cash and liquid investments | Around Rs 2.5 lakh crore as of March 31, 2026 |
| Reported current borrowings | Around Rs 1.1 lakh crore, including lease liabilities, as of March 31, 2026 |
Heavy investment makes funding flexibility the priority
Moody’s expects Reliance’s consolidated capital expenditure to stay near $15 billion a year over the next two years. Equity raised by Jio would help finance part of that investment programme while limiting the need for additional borrowing.
The agency forecasts Reliance’s adjusted net debt-to-EBITDA ratio at approximately 1.0–1.2 times over the same period, below its 3.0-times downgrade threshold. These are Moody’s projections, rather than reported results or company guidance.
Reliance already has strong credit metrics and substantial liquidity, Moody’s said. That explains why the agency sees the IPO chiefly as a way to preserve funding options during a period of high spending, rather than as a transaction that immediately transforms the group’s financial position.
A public listing would also diversify Jio Platforms’ funding sources and broaden its access to domestic and international capital for future investment, acquisitions and strategic partnerships.
Reliance will retain control of a major earnings business
Reliance holds 66.4% of Jio Platforms and will retain control after the IPO. The final offer structure will determine the extent of dilution and the increase in minority interests.
The parent’s description of Jio’s connectivity and digital-services operations outlines a business spanning telecommunications and services in areas including commerce, entertainment, financial services and education. That operating scope provides context for the network and digital investment discussed in Moody’s assessment.
Digital services contributed 37% of Reliance’s consolidated EBITDA in the financial year ended March 31, 2026. The business therefore remains a substantial earnings contributor even as the listing brings in outside equity.
Conclusion
The next scheduled milestone is the October 23, 2026 subscription close. For Reliance’s credit profile, the central issue is how the fresh equity supports the planned debt repayment while preserving capacity for continued investment.
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