Reliance Jio IPO: Reliance Industries is likely to launch the initial public offering (IPO) for its telecom arm, Jio, next year, while the IPO for its retail division may be delayed until a later date, according to media reports.
“Mukesh Ambani targets a 2025 Mumbai listing for his telecom business Jio, valued by analysts at over $100 billion, and plans to launch his retail unit’s IPO much later,” Reuters reported, quoting two people familiar with the matter.
Reliance has not officially announced any dates for the Jio IPO. Mint could not independently verify this news.
Also Read | Reliance Jio beats Street, tariff hike lifts Arpu after three quarters
“The two sources said Reliance has now firmed up plans to launch the Reliance Jio IPO in 2025 as it internally believes it has achieved a stable business and revenue stream. But the retail business IPO is not expected until after 2025 as the company first needs to address some internal business and operational challenges,” the Reuters report further said.
In 2019, Mukesh Ambani stated that Reliance Jio and Reliance Retail aimed to go public within five years. However, there has been no update on the timeline since then.
Reliance Jio reported strong September quarter numbers, surpassing analyst expectations on multiple fronts, including net profit, EBITDA and average revenue per user (ARPU).
The company reported a 14.76 per cent quarter-on-quarter (QoQ) rise in consolidated net profit for the second quarter to ₹6,539 crore. Consolidated revenue from operations rose 7.67 per cent QoQ to ₹31,709 crore.
On year-on-year (YoY) terms, India’s number one telecom services provider clocked 18 per cent revenue growth and 23.4 per cent increase in net profit for the quarter ended September, beating market estimates.
Jio’s ARPU (average revenue per user) during the quarter increased to ₹195.1 with the partial follow-through of the tariff hike and a better subscriber mix. The company said the full impact of the tariff hike will be felt in the next two to three quarters.
Also Read | Reliance Q2 result: Profit, EBITDA decline YoY; 5 key takeaways from RIL earning
Earlier, Mint reported that Jio aims to export its high-speed fixed wireless access (FWA) internet as a managed service rather than entering overseas markets directly as a telecom services provider.
Reliance share price fell 4 per cent in intraday trade on Monday, November 4. Around 3:20 pm, the stock traded 2.96 per cent lower at ₹1,299.40.
The stock hit a 52-week low of ₹1,149.08 on November 10 last year and a 52-week high of ₹1,608.95 on July 8 this year on the BSE.
The stock has gained 15 per cent over the last year.
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