Mukesh Ambani, Asia’s richest man, has launched India’s largest ever equity offering, a move that London investors are closely monitoring for potential spillover gains. The share sale, announced early Monday, aims to raise approximately $10 billion through the issuance of new shares in Reliance Industries, the conglomerate he controls.
The offering, which opens to institutional investors today, is expected to be the biggest in Indian corporate history, surpassing the previous record set by Coal India in 2010. It will be conducted through a qualified institutional placement and a rights issue, with the proceeds earmarked for debt reduction and expansion into green energy and digital services.
London’s financial district has taken particular interest in the sale. The London Stock Exchange has seen a steady increase in Indian company listings in recent years, and analysts suggest that a successful Ambani offering could further boost investor confidence in Indian equities among UK-based funds. ‘Ambani’s move signals confidence in the Indian growth story,’ said Jane Holloway, an emerging markets strategist at Canary Wharf Capital. ‘London institutions will be watching the uptake closely, as it may lead to increased capital flows between the two markets.’
The timing is significant. India’s economy has rebounded strongly from the pandemic, with GDP growth forecast at 7.5% for the current fiscal year. Reliance Industries, which spans oil refining, telecommunications, and retail, has been a key beneficiary. The company’s shares have risen 15% in the past year, outperforming the broader Mumbai market.
Ambani, 66, has been on a global fundraising spree. In 2020, he secured $20 billion from tech giants including Facebook and Google. This latest sale, however, is notable for its domestic focus. The company has said that 60% of the offering will be reserved for Indian retail and institutional investors, a move seen as an effort to deepen the country’s capital markets.
Regulatory approvals were secured last week. The Securities and Exchange Board of India cleared the offering after a brief review, noting that the company had met all disclosure requirements. The sale is expected to close by the end of the month, with shares to be listed on the Mumbai and National Stock Exchanges.
London’s reaction has been measured but optimistic. The FTSE 100 edged higher in early trading, though analysts caution that direct correlation is limited. ‘This is a domestic Indian event with global implications,’ said Marcus Reed, head of Asian equities at Barclays. ‘British pension funds have been increasing their exposure to India. A successful Ambani sale will validate that strategy.’
The offering is not without risks. Reliance Industries carries a high debt load of $25 billion, which the sale aims to reduce. Furthermore, the company’s valuation, at a price-to-earnings ratio of 30, is considered expensive compared to global peers. Some analysts have questioned whether the retail portion will be fully subscribed given retail investors’ limited appetite for large block deals.
Nevertheless, the move cements Ambani’s position as a dominant force in Indian finance. His net worth, estimated at $90 billion, is set to rise further if the share sale succeeds. For London, the story is one of strategic alignment. As Britain seeks to deepen trade ties with India post-Brexit, financial services remain a key pillar. The Ambani share sale may prove a litmus test for this evolving relationship.
