Reliance Jio IPO: After Jio Tariff Hikes and 5G Monetisation, Company Preparing for India’s Largest IPO, Says Report
Reliance Jio could be preparing for India's largest IPO till date after taking decision of Jio tariff hike and 5G monetisation last month. The Jio IPO related news is expected during RIL AGM.
Mumbai, July 5: Reliance Jio recently introduced its new hiked Jio tariff rates in India with up to 25% price increase and also announced to monetise 5G business. According to a report, the latest moves by Reliance Jio Infocomm suggested that the telecommunication company would move towards India's largest IPO (Initial Public Offering).
Last month, Reliance Jio Tariff hike was announced that led other telecom giants to increase their prices. The company also made another move to monetise its 5G services by driving a 46% increase in the prices of 5G users. According to a report by Times of India, these moves hinted at a significant IPO announcement by the company soon. The report highlighted that more details about the Reliance Jio IPO would be announced next month during Reliance Industries Limited's annual general meeting. Reliance Jio Tariff Hike: Jio Announces New Unlimited 5G Data Plans, Hikes Prices for Other Pre-Paid and Post-Paid Plans; Check Revised Tariffs.
Jefferies Group, a US-based multinational investment banking company, reportedly valued Reliance JIo at an estimated USD 133 billion (around INR 11.11 lakh crore). It emphasised that Jio, with such a valuation, could offer India's biggest IPO to date. Jefferies said it would look for any update on Jio's listing at the upcoming RIL AGM. It also said that the rising focus on monetisation by Reliance Jio could hint at an imminent IPO launch. The investment banking company also projected that Jio could achieve from 18% to 26% compound annual growth in revenue and profit from FY24 to FY27.
According to the current regulations, companies with a valuation of INR one lakh or more could sell at least 5% of the initial public offering (IPO). On the other hand, the regulations mandate a 10% minimum IPO for smaller companies. The report said that based on the Reliance Jio valuation, Jefferies estimated that the telecom company shares could be worth above INR 55,000 crore.
The report mentioned that analysts suggested that PE firms might exit their investments through an IPO considering the normal holding period for PE investors is four years. According to some experts, the upcoming Jio IPO could improve the company's financials. UPI Payments in France: After Eiffel Tower, NIPL Enables Acceptance of Unified Payments Interface at Another Location Ahead of Paris Olympics.
Some experts reportedly believe that the upcoming IPO of Reliance Jio could come with improvement and would be supported by the recent hike in tariffs. Some experts believe the another Jio tariff hike round will be announced in 2025.
(The above story first appeared on LatestLY on Jul 05, 2024 07:03 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).