Mumbai11 minutes ago
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Reliance Industries Limited (RIL)’s telecom unit Jio may bring IPO by next year i.e. 2025. According to American brokerage Jefferies, through this the company can raise more than $ 112 billion (about ₹ 9.3 lakh crore).
Brokerages say that this IPO can increase the share price of Reliance Industries by 7%-15%. Jefferies has given a ‘buy’ rating to RIL shares with a target of Rs 3,580. Reliance shares have seen a gain of more than 22% so far this year.
Ambani has two options for listing Jio on Dalal Street
Jefferies said that Mukesh Ambani has two options to list Jio on Dalal Street – IPO (Initial Public Offering) or a spin-off i.e. demerger like Jio Financial Services. Institutional investors are in favor of the spin-off because the holding company discount will not apply to the listed entity.
However, the IPO will help Reliance retain majority control over Jio after listing. Experts and industry insiders expect that information about Jio’s IPO may be given in the likely AGM of Reliance Industries next month.
Jio Financial was separated from RIL in July
Reliance’s financial services business was separated from its parent company Reliance Industries Limited (RIL) in July 2023. After the demerger, the share price of Jio Financial was fixed at Rs 261.85 under the price discovery mechanism.
Today, the stock of Jio Financial Services is trading at Rs 347.60 with a decline of 0.10%. In the last 1 month, the stock of Jio Financial has given a negative return of 0.76%. Whereas, in the last 6 months, the stock of Jio Financial has given a positive return of 38.18%.
Jio has more than 48 crore users
According to the data released by TRAI in April, Reliance Jio has a total of 484.04 million i.e. 48.40 crore subscribers. At the same time, Airtel has 275.41 million (27.54 crore) and Vodafone Idea has 126.44 million (12.64 crore) customers. Whereas, government company BSNL has 24.98 million (2.49 crore) customers. This data of users includes both wired and wireless customers.
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