Reliance Jio IPO – Billionaire Mukesh Ambani is reportedly gearing up for what could potentially be the largest initial public offering (IPO) in the history of Dalal Street. The plan is to list Reliance Jio, the telecom arm of Reliance Industries Ltd (RIL), on stock exchanges to raise an estimated Rs 35,000-40,000 crore, as per a recent newspaper report.
Reliance Jio IPO
Valuing the telecom company at $120 billion, the massive IPO is anticipated to take place in the second half of 2025. It will involve the sale of existing shares, issuance of new shares, and a pre-IPO placement for select investors, according to a report in The Hindu Business Line. Discussions for the pre-IPO placement have already commenced, with the final allocation of existing versus new shares yet to be determined.
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Although there has been no official confirmation from RIL regarding the IPO, the potential listing of Reliance Jio at Rs 40,000 crore would make it the largest IPO in India, surpassing Hyundai India’s Rs 27,870 crore IPO in October 2024. This IPO could also serve as a catalyst for RIL shares, which experienced a loss for the first time in a decade in 2024, with a 6% decline over the past year.
In July of the previous year, global investment banking firm Jefferies had suggested that the much-anticipated listing of Reliance Jio could occur in 2025 at a valuation of $112 billion. The recent tariff hikes by Jio, coupled with its strategic focus on monetization and market share gains, have set the stage for a potential public listing in 2025, as per Bhaskar Chakraborty of Jefferies.
Following the tariff adjustments in July 2024, the telecom industry witnessed a decline in subscribers, although the rate of decrease has slowed down, with September marking the peak. During the period from July to October, Reliance Jio lost around 16.2 million subscribers.
Jio continues to dominate the market, boasting a subscriber market share of 40%. In the telecom industry, established companies are fiercely competitive in their efforts to retain market share, potentially sparking a price war that could affect Average Revenue Per User (ARPU). However, the primary concern lies in the potential impact on subscriber growth, according to UBS.
Analysts predict that Jio will fully realize the benefits of the recent tariff increase in terms of revenue within the next 2-3 quarters. This is largely due to a significant portion of Jio’s subscriber base being on long-term plans.
Stay tuned for more updates and insights on the stock market! For more insights on investing in the Indian stock market, check out resources like Moneycontrol and NSE India.
Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.