Reliance JIO ready to launch biggest IPO of the year with $ 120 Billion Valuation
Reliance Jio Infocomm Ltd, the telecom arm of Jio Platforms Ltd and part of Mukesh Ambani's Reliance Industries Ltd is gearing up for its highly anticipated IPO in 2025. With an ambitious valuation target exceeding ₹ 10 lakh crore ($120 billion), this offering is set to be one of India’s largest. The IPO is expected to debut on the market in the second or third quarter of 2025. While specifics like the issue size remain under wraps, early estimates indicate that Reliance Jio could raise over ₹40,000 crore marking a landmark event in the Indian capital markets.
Industry Outlook
According to the IBEF (India Brand Equity Foundation) Report, India's wireless subscriber base surged to 1,168.95 crore in May 2024, with Reliance Jio solidifying its dominance by capturing a 40.6% market share, supported by its impressive 474.61 crore users. Simultaneously, the country's e-commerce market is on a robust growth trajectory, expected to expand to an impressive US$325 billion by 2030, driven in part by the quick commerce segment, which is projected to reach US$19.93 billion.
Reliance Jio Infocomm’s Financial Performance
RJIL’s operating revenue saw a 14.5% YoY growth, supported by the tariff hike and strong growth in home connections. EBITDA grew by 16.6% YoY, with a strong margin of 53.7%, reflecting higher revenues and efficient operations.
In Q2 FY25, Reliance Jio achieved an ARPU of ₹195.1, driven by the partial impact of the tariff hike. The rapid adoption of 5G and AirFiber boosted per capita data usage to 31 GB per month. Data traffic increased by 24% year-on-year (YoY), while voice traffic grew by 6.4% YoY. However, the company reported a net customer loss of 10.9 million during the quarter.
About the Company
Reliance Jio, introduced in 2016, reshaped India’s digital landscape by delivering affordable, cutting-edge digital technologies to millions. With a mission to provide seamless connectivity across the nation, Jio has been instrumental in revolutionizing how India engages with the digital world, driving accessibility and innovation. At the time of Jio's launch, India ranked 155th globally in mobile data consumption. In just a year, the country soared to the top spot, overtaking nations like the USA and the UK in mobile broadband usage. This transformative impact marked a new era in India's digital journey, distinguishing a clear divide between the pre-and post-Jio periods.
Today, Jio stands as India’s largest telecom provider and ranks as the second-largest single-country operator globally. With a wide range of services, including connectivity, fibre, mobile devices, digital apps, and enterprise solutions, Jio is at the forefront of shaping India’s digital ecosystem and establishing its global prominence.
|
Disclaimer: This news is solely for educational purposes. The securities/investments quoted here are not recommendatory. To read the RA disclaimer, please click here |