Reliance Jio Infocomm Limited, the telecom powerhouse under Mukesh Ambani’s Reliance Industries Limited (RIL), is making waves with its much-anticipated Initial Public Offering (IPO). If all goes as expected, Jio’s listing could set new records in India’s stock market, surpassing Hyundai Motor India’s ₹27,870 crore ($3.3 billion) IPO in October 2024.
IPO Size and Market Expectations
Industry experts estimate that Jio’s IPO could be valued between ₹35,000 crore to ₹40,000 crore, positioning it as the largest in India’s history. The telecom giant is eyeing a staggering ₹10 lakh crore ($120 billion) valuation. However, official details, including the exact issue size and share structure, remain undisclosed as RIL has yet to make a formal announcement.
The IPO is projected to launch in the latter half of 2025, with a structure likely comprising both fresh equity issuance and an offer-for-sale (OFS) by existing shareholders. Reports also suggest that a pre-IPO placement may be offered to select institutional investors.
Dominance in India’s Telecom Sector
Jio, India’s leading telecom provider, boasted a subscriber base of 482 million as of December 2024. The company’s aggressive pricing strategies and market expansion have allowed it to outshine competitors. The IPO is expected to attract a strong influx of both domestic and global investors, bolstering India’s equity market sentiment.
Beyond mobile services, Jio is making significant strides in expanding its digital ecosystem. The company is ramping up its 5G-based fixed wireless access (FWA) segment through Jio AirFiber, targeting the addition of one million customers per month. With an average revenue per user (ARPU) of ₹650-700 for AirFiber—over three times higher than the mobile ARPU of ₹203—this service is a crucial driver of Jio’s 5G monetization strategy.
Financial Performance in Q3 FY25
Reliance Jio reported a robust 19.4% year-on-year revenue growth in Q3 FY25, driven by higher tariffs and strong demand for home broadband. EBITDA surged by 19% YoY, with a healthy 50.1% margin.
Jio’s average revenue per user (ARPU) stood at ₹203.3, reflecting the impact of recent tariff hikes and an improved subscriber mix. Data consumption per user reached 32.3 GB per month, while overall data traffic saw a 22% YoY jump. Additionally, Jio’s customer base expanded by 3.3 million in the quarter, recovering from post-tariff-hike subscriber losses.
Challenges and Market Competition
Despite its leadership, Jio faces tough competition from rivals like Bharti Airtel, which gained 1.9 million subscribers in October 2024. State-owned BSNL has also strengthened its position, adding 0.5 million new users with aggressive broadband and mobile offerings.
Furthermore, if Elon Musk’s Starlink receives regulatory approval in India, Jio could encounter stiff competition from its satellite-based Direct-to-Cell broadband technology, which eliminates the need for towers and Wi-Fi infrastructure.
Future Prospects: AI and Satellite Expansion
Jio is aggressively investing in AI-driven innovations and recently partnered with global tech leader Nvidia to develop advanced AI language models. Additionally, the company has secured regulatory approval for satellite-based internet services, which could further expand its revenue streams.
What’s Next?
Jio’s IPO is expected to be a game-changer, not just for the company but for India’s stock market. However, with Reliance Industries’ stock seeing a 6% dip over the past year, will Jio’s market debut help revive investor confidence in RIL?
All eyes are on this historic listing, and its impact will unfold in the coming months!
Reference is taken from here