Reliance Jio Infocomm (Reliance Jio Infocomm) seems to be leading everyone in making mobile recharges expensive and monetizing its 5G business. This may be a sign that this telecom market leader is ready for India’s biggest IPO. Some analysts say that Jio’s IPO (Jio IPO Date) may come soon i.e. early next year. Analysts and industry veterans hope that some clarity will come on Jio’s huge IPO in the Annual General Meeting (RIL AGM) of Reliance Industries Limited to be held next month.
The platform is now set
Experts say the platform is now set for the telecom market leader’s much-anticipated IPO. Tariff hikes and money from the 5G business will increase Jio’s average income per user (ARPU) in the coming quarters. This will make the company more attractive to potential investors ahead of the IPO.
The valuation is Rs 11.11 lakh crore
Brokerage firm Jefferies said it is awaiting any developments regarding Jio’s listing at the upcoming Reliance AGM. Jefferies said the increasing focus on monetisation could be a big sign of its early listing. According to Jefferies, after the latest tariff hike and 5G monetisation, Jio’s valuation is around Rs 11.11 lakh crore. Based on this valuation, Jio’s IPO will be India’s largest IPO ever. As per current rules, companies with a valuation of ₹1 lakh crore or more have to sell at least 5% stake in an IPO (for smaller companies, the minimum is 10%). This means Jio’s share sale could be worth Rs 55,500 crore based on the current valuation given by Jefferies.
LIC had brought an IPO of 21,000 crores
The biggest IPO in India so far has been public sector Life Insurance Corporation’s (LIC) over ₹21,000 crore offer in 2022, when it sold only 3.5% stake as a special case. Meanwhile, Hyundai Motor’s Indian unit last month sought regulatory approval to raise up to ₹25,000 crore by selling 17.5% stake.
Reliance Industries holds 67.03% stake
Mukesh Ambani-led Reliance Industries holds a 67.03% stake in Jio Platforms Ltd (JPL), which comprises Reliance’s telecom and digital assets. The telecom business accounts for the majority of JPL’s operations. Of the remaining 32.97%, 17.72% is collectively held by strategic investors Meta and Google. While global PE investors including Vista Equity Partners, KKR, PIF, Silver Lake, L Catterton, General Atlantic and TPG hold the remaining 15.25%. JPL had raised over ₹1.52 lakh crore from these prominent global investors in 2020.
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