Table of Contents
Mukesh Ambani could launch the IPO of his telecom company Reliance Jio this year with an enterprise value of nearly $100 billion, brokerage house firm CLSA said in a research note. RIL’s telecoms division Reliance Jio could see a separate IPO/listing in 2020 after recently selling 33% stakes to 13 investors, including nearly 10% to Facebook and 8% to Google, CLSA analysts said. Reliance Jio is the country’s largest telecom service provider, with a mobile reader base 426.5 million as of the end of October 2021, data released by TRAI showed.
Overview of Reliance Jio
Reliance Jio is a telecom giant in India and the leading provider of 4G services. It owned by Reliance Industries Limited (RIL), one of the largest conglomerates in the country. The company has successfully operated due to its innovative approach and aggressive pricing policies. It now offers an IPO in the Indian markets, which could be a golden opportunity for investors.
The IPO will be a two-part offering of primary and secondary shares. The primary issue of shares will consist of a fresh issue of equity shares worth Rs. 20,000 crores. It will be use to finance the company’s expansion plans. The secondary offering will consist of a sale of shares worth Rs. 10,000 crore by existing shareholders. This will help the company in raising additional funds for its growth.
Reliance Jio is one of India’s most profitable companies, and its IPO could be an excellent opportunity for investors. It has a customer base of over 300 million and well-positioned to benefit from the growth of digital payments and the Internet of Things. In addition, it is well place to capitalize on the development of the Indian telecom sector and the increasing demand for data services.
Jio’s IPO is a crucial catalytic agent for industry valuation.
Reliance Jio’s separate listing could be a catalyst for the telecom sector in India, according to CLSA. “We believe that Reliance Jio’s IPO will be an industry valuation catalyst as the leader had a pre-IPO transaction valuation of $20 billion at 10x EV/Ebitda as our pick Bharti Airtel with leading Arpus (average revenue per user) and 15% CAGR on console Ebitda operations. “It’s a 25% discount on EV/Ebitda,” he said. CLSA analysts value Reliance Jio at $99 billion EV at 11.5x EV/Ebitda, including $5 billion EV for JioFiber.
Jio vs. Airtel
According to brokerage firms, Reliance Jio is expect to reach a total subscriber base of 435 million to 438 million by the end of the October-December quarter. While the second largest telecom company, Bharti Airtel, is expecte to report a total subscriber base of 318 million to 323 million. However, regarding ARPU, Bharti Airtel is ahead of Mukesh Ambani’s Jio. ICICI Direct has set the APRU for Jio at around Rs.151 per user in the third quarter, up 5%, while the ARPU of Bharti Airtel is expecte to be Rs.164, up 6.6% compare to the previous quarter.
In the previous year, 2021, Reliance Jio exact a 39% share of the telecom market. Still, in the July-September quarter, Jio lost 11 million subscribers due to payment defaults after experiencing churn due to the pandemic. “A high level of unused subscribers and a shortage of postpaid subscribers are challenges for the market leader,” said CLSA. However, the brokerage added that Reliance Jio’s 2022 launch of the entry-level smartphone “JioPhone Next,” co-developed with Google, could limit the churn/conversion of existing 2G subscribers.
What’s the latest news on JIO’s upcoming IPO?
Today’s stock market is a world of investment opportunities. Many investors who have stayed away from stock investing have discovered that the markets are a lucrative place to build wealth. Besides the stock market, there are many other ways to invest in stocks in the markets, such as through SIPs and mutual funds. Another very fruitful way to invest in stocks of a strong company in the recent past is through an IPO. An IPO, an IPO is conductby a private company when it wants to list its stock on the stock exchange. For example, reliance Industries Limited (RIL) Chairman Mukesh Ambani has reportedly announced the launch of an IPO for Reliance Jio.
Information on Jio’s IPO
You might need patience if you’re waiting for an upcoming Jio family IPO. According to the latest reports and according to JP Morgan, Reliance Industries Limited is unlikely to announce the launch of an IPO in 2022. Despite reports to the contrary, investors are still awaiting this announcement with great optimism. Most investors assume the subsequent IPO would be announce in the second half of 2022. Media reports confirmed this earlier in the year, so it’s no surprise that investors are still hopeful. However, the latest investment firm JP Morgan report suggested that consumer company valuations have improved. With above-average earnings for every Jio Telecom user, this should be a big step forward. It encourages the IPO investor community to exit the Reliance Jio house.
Conclusion Rajkotupdates.News :Golden Opportunity To Invest Jio Ipo
Rajkotupdates.News :Golden Opportunity To Invest Jio Ipo: The Jio IPO is a golden opportunity for anyone investing in a strong and stable business. The company’s strength lies in its customer base and ability to innovate and build products quickly. Furthermore, the company’s offerings, such as its mobile network, have succeeded in India, making it a sure bet for investors. With its low entry price, the potential for good returns on the Jio IPO is very high. So, if you’re looking for a great investment opportunity, the Jio IPO is worth considering.