Welcome to the speculation and excitement surrounding the potential initial public offering (IPO) of Reliance Jio Infocomm, one of India’s telecom market leaders. Recent actions taken by Jio, such as increasing mobile tariffs and exploring monetization in the 5G business, have fueled rumors that an IPO may be on the horizon.
Analysts are buzzing with anticipation, suggesting that this IPO could be the largest in India’s history. Some even predict that the IPO could take place as early as the beginning of next year. Industry experts expect more details about Jio’s IPO plans to be unveiled at the upcoming annual general meeting of its parent company, Reliance Industries Ltd.
The recent tariff hike and revenue from the 5G business are expected to boost Jio’s average revenue per user (ARPU), making it more attractive to potential investors. This strategic move could set the stage for Jio’s highly-anticipated IPO in the near future, according to Mayuresh Joshi, head of equity research at the Indian unit of William O’ Neil & Co.
Jefferies, a brokerage firm, is eagerly awaiting updates on Jio’s listing at the upcoming RIL AGM, noting that the focus on monetization could be a sign of an imminent listing. Based on the latest developments, Jefferies values Jio at a staggering $133 billion, potentially making it India’s largest IPO to date.
Under current regulations, companies with a valuation of Rs 1 lakh crore or higher are required to sell at least a 5% stake in the IPO. This could mean a share sale worth Rs 55,500 crore for Jio based on Jefferies’ valuation. With Reliance Industries Limited holding a majority stake in Jio Platforms Ltd, which includes the telecom and digital assets, all eyes are on the potential IPO.
Analysts suggest that private equity firms may consider exiting their investments through the IPO, as the typical holding period for PE investors is around four years. With improving financials and anticipated revenue growth, Jio’s IPO could be a game-changer in the Indian market.
As we await more details and confirmations, the buzz around Jio’s IPO continues to grow. Stay tuned for further updates on this potentially historic event in India’s telecom industry.
