July 18, 2024
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Reliance Jio IPO, Mukesh Ambani’s company may launch India’s biggest IPO of Rs. 55500 Crore
The stage is now set for the telecom market leader’s much awaited Reliance Jio IPO in the near future. Mukesh Ambani’s Reliance Jio Infocomm is believed to be preparing to make a debut on the D-Street, as per leading media report.
The tariff hike and money from the 5G business to boost Jio’s average revenue per user (ARPU), a key performance metric for telecom firms, will make the business more attractive to potential investors ahead of a share sale. This move is considered an indication of the telecom market leader readying for an initial public offering that could be India’s largest.
Experts will be seeking clarification at AGM
Reliance Industries is likely to hold its AGM in August, and analysts and industry experts will be seeking clarification from the management onReliance Jio’s IPO. Brokerage firm Jefferies said it would look out for any developments on Jio’s listing at the upcoming RIL AGM, adding, “Rising focus on monetisation could be a precursor to its imminent listing.”
Reliance Jio Valuation:
Following the latest tariff hike and 5G monetisation moves, Jio is valued at around $133 billion (Rs 11.11 lakh-crore), according to Jefferies. At this valuation, a Reliance Jio IPO could turn out to be India’s largest by far. Current rules require companies with a valuation of Rs 1 lakh crore or more to sell at least a 5% stake in the IPO (for smaller companies, the minimum is 10%), which means Jio’s share sale could be worth Rs 55,500 crore based on current valuation assigned by Jefferies.
Hyundai Motor’s India unit, meanwhile, sought regulatory clearance last month for an IPO to raise as much as Rs 25,000 crore by selling a 17.5% stake.
Reliance Jio Shareholding pattern:
RIL holds a 67.03% stake in Jio Platforms Ltd (JPL), which houses Reliance’s telecom and digital properties. The telecom business makes up the bulk of JPL’s operations. Of the balance 32.97%, 17.72% is collectively held by strategic investors Meta and Google, while global PE investors.
Grey market experts recommend retail investors to buy at least one share in each account to avail preferential offer under shareholders’ quota, from the promoter company, Reliance Industries.
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