According to recent reports, the widely-awaited retail IPO of Reliance Industries may be delayed, but its IPO for its telecom unit, Jio, is expected to hit the market next year. According to people close to the matter, billionaire owner Mukesh Ambani of Reliance Industries plans to make a splash with a market debut when he lists Jio in Mumbai in 2025. Analysts value the telecom giant at over $100 billion.
The timeframe for the IPO is yet to be confirmed by the parent company, Reliance Industries, as the company hasn’t made any official statements. Nonetheless, the company seems to be confident that the business model of Jio is quite stable and will do just fine in terms of revenues to flow well through public listing. In contrast, the IPO of the Retail arm may get even further delayed as reported, owing to internal business refinements that need to be seen before a market debut happens.
IPO of Reliance Industries is finally becoming a reality
The IPO of Reliance Industries has been under discussion ever since 2019. That was when Mukesh Ambani declared that the group would make both Jio and Reliance Retail public companies in five years. The more recent financials of the Jio firm have escalated the buzz as the Telecom leader has delivered strong results for Q2, higher than estimates in net profits, EBITDA, and average revenue per user. For example, the consolidated net profit was up 14.76% at ₹6,539 crore, while the revenue from operations posted a 7.67% increase to ₹31,709 crore for September.
The positive growth has placed Reliance Industry’s IPO for Jio as a strategic move because Jio’s ARPU also went up to ₹195.1, which is elevated by recent tariff hikes, and the company expects its full impact in the subsequent quarters, which can add strength before the IPO is launched.
RIL IPO, especially from the standpoint of investor interest in an entity that can provide large-scale growth, particularly for international forays from the company with the largest ambitions – Jio- and especially considering Jio is not planning to go direct telecom but as a high-speed FWA as managed services.
On the market, on Monday, Reliance’s shares declined by nearly 3% and were selling at ₹1,299.40. The fluctuations notwithstanding, the stock went up by 15 percent in the last calendar year, showing steady investors’ interest ahead of Reliance Industry’s IPO slated for Jio.
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