Jio, the telecom unit of Reliance Industries Limited (RIL), can launch IPO next year i.e. by 2025. Whereas, the company may postpone the IPO of retail business for now. News agency Reuters has given this information in one of its reports quoting people familiar with the matter. According to experts, the valuation of Jio is more than 100 billion dollars.
In recent years, Ambani, Asia's richest man, has collectively raised $25 billion from companies like KKR, General Atlantic and Abu Dhabi Investment Authority for digital, telecom and retail businesses. However, no information regarding this has been given officially by the company.
Jio has more than 47 crore users
According to the data released by TRAI on October 25, 2024, as of August 31, Reliance Jio has a total of 47.17 crore subscribers.
At the same time, Airtel has 38.49 crore customers and Vodafone Idea has 21.40 crore customers. Whereas, government company BSNL has 9.10 crore customers. This data of users belongs to wireless customers.
Reliance shares will also rise due to IPO
According to media reports, Jio's IPO will have a positive impact on RIL shares. IPO can increase the share price of Reliance Industries by 7%-15%. Reliance shares have remained flat so far this year. Whereas, this stock has given negative returns of 8.53% in last 6 months and 6.35% in 1 month. Today Reliance shares closed at Rs 1,298.50 with a decline of 3.00%.
Reliance's financial services business was listed in 2023
Earlier, Reliance's financial services business was separated from its parent company Reliance Industries Limited (RIL) in July 2023. After demerger, the share price of Jio Financial was fixed at Rs 261.85 under the price discovery mechanism.
After this, on August 21, the company's shares were listed on Bombay Stock Exchange (BSE) at Rs 265. At the same time, the share was listed at Rs 262 on the National Stock Exchange (NSE). After listing, there was a decline in JFSL shares that day. The stock closed at Rs 251.75 on BSE with a lower circuit of 5%. At the same time, on NSE also the share closed at Rs 248.90 with a lower circuit of 5%.
Jio's second quarter net profit increased by 14% year-on-year
In the second quarter of the financial year 2024-25, the net profit of Reliance Jio increased by 14% on an annual basis to Rs 6,231 crore. It was Rs 5,445 crore in the same quarter last year. At the same time, the company's revenue increased by 7.0% on annual basis to Rs 28,338 crore. Last year in July-September it was Rs 26,478 crore.
Jio's EBITDA increased 8% year-on-year to Rs 15,036 crore in the quarter. It was Rs 13,920 crore in the same quarter last year. Whereas the margin was 53.1%. Average Revenue Per User (ARPU) is used to measure the performance of telecom companies. After the increase in recharge prices in July, the company's ARPU has increased to Rs 195.10.
Before this, there was no change in it for three consecutive times and it was stable at Rs 181.7. The company had released Q2FY25 results last month on October 14.
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