Reliance Jio Infocomm Ltd, the telecom arm of Mukesh Ambani-led conglomerate Reliance Industries Ltd (RIL) and a subsidiary of Jio Platforms Ltd, is creating a buzz in the market over its IPO launch. Expected to be the biggest initial public offering so far in India, the much-talked-about IPO is expected to be launched next year.
According to reports, Reliance Jio may launch an initial public offering (IPO) of over $6.25 billion in the second or third quarter of the calendar year 2025. Recently, Hyundai Motor India IPO worth $3.3 billion became the country’s biggest public issue till date when it opened for subscription in October 2024.
Though the issue size and other details have not been officially confirmed by the company, market experts are speculating about the IPO size based on the company’s valuation of over $100 billion.
The listing timeline in 2025 is also in sync with Mukesh Ambani’s earlier announcement in 2019 when he said that both Reliance Jio and Reliance Retail would “move towards” listing within the next five years.
Reliance Jio Financials
The IPO buzz could not have come at a more opportune time as Reliance Jio recently became India’s largest telecom company with a subscriber base of 479 million.
During the quarter ended September 2024, Reliance Jio reported a consolidated net profit of ₹6,539 crore. This was 14.76% higher than the previous quarter ended June 2024, and 23.4% more than the year-ago quarter.
Meanwhile, consolidated revenue from operations stood at ₹31,709 crore, up 7.7% quarter-on-quarter and 18% year-on-year.
Its EBITDA (earnings before interest, tax, depreciation and amortisation) jumped 17.8% year-on-year to ₹15,931 crore in the September quarter. This was primarily due to the 13-25% tariff hike undertaken by the company earlier this year.
Consequently, its average revenue per user (ARPU) in September rose to ₹195.1, up 7.4% from ₹181.7 in the previous quarter as well as the year-ago period. Notably, Jio’s ARPU was flat for the past three consecutive quarters till June 2024. Meanwhile, the company’s customer base rose 4.2% YoY to 478.8 million during the September quarter.
Jio also continues to be the world’s largest telecom operator by data usage, with about 45 exabytes of data being consumed on the telecom operator’s network during the September quarter.
On the other hand, the much-awaited public offering of Reliance Industries’ retail business is likely to be delayed. According to reports, the company will address a few internal business and operation issues before the launch of the IPO.
Meanwhile, shares of Reliance Industries were trading 0.59% higher at ₹1,313 apiece on the NSE at 1:23 pm.
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