Jio’s ₹40,000 Crore IPO: Set to Be India’s Largest, Expected in Second Half of the Year

Jio’s ₹40,000 Crore IPO: Set to Be India’s Largest

Reliance Industries Limited (RIL) has initiated the process for the much-anticipated IPO of its telecom unit, Jio. According to sources, the IPO is expected to be valued between ₹35,000 and ₹40,000 crore. Reliance plans to launch the IPO in the second half of the year, making it the largest IPO in India’s history. The company has already begun discussions with investors for pre-IPO placements.

India’s Current Largest IPOs

Until now, the largest IPO in India was Hyundai Motor India’s ₹27,870 crore IPO launched in October last year. Prior to this, Life Insurance Corporation of India (LIC) held the record with a ₹21,000 crore IPO in 2022.

Jio: India’s Leading Telecom Operator

Reliance Jio, with its extensive investments in telecom, internet, and digital businesses, has emerged as India’s largest telecom operator. Over the past five years, Reliance has invested approximately ₹26,000 crore in Jio’s infrastructure. By the end of October, Jio boasted 470 million wireless subscribers.

The company’s profitability saw a boost due to tariff hikes last year.

Financial Highlights: Jio’s Q2FY25 Performance

• Net Profit Growth: Jio’s net profit for Q2FY25 rose 14% year-on-year to ₹6,231 crore, compared to ₹5,445 crore in the same quarter last year.
• Revenue Growth: Revenue increased by 7% year-on-year to ₹28,338 crore, up from ₹26,478 crore.
• EBITDA: Jio’s EBITDA grew 8% year-on-year to ₹15,036 crore, with a margin of 53.1%.
• ARPU (Average Revenue Per User): Following a tariff hike in July, ARPU increased to ₹195.10, compared to ₹181.70 previously.

Jio Financial Services Listing in 2023

Earlier, Reliance’s financial services business was demerged in July 2023. Following the demerger, the share price of Jio Financial Services was set at ₹261.85 under the price discovery mechanism.

On August 21, Jio Financial Services shares were listed at ₹265 on the Bombay Stock Exchange (BSE) and ₹262 on the National Stock Exchange (NSE). Over the year, the shares delivered a 29.25% return, reaching ₹304.

Why Jio’s IPO is a Game-Changer

The ₹40,000 crore IPO will not only be India’s largest but also a testament to Jio’s robust growth and market leadership. The funds raised are expected to bolster Jio’s expansion plans, solidifying its position as a market leader in telecom and digital services.