Reliance Industries, led by Mukesh Ambani, is all set for an initial public offering (IPO) of its telecom division and Reliance Jio aims to target the Mumbai Stock Exchange in 2025.Analysts estimate Jio’s valuation could exceed $100 billion. According to sources, the Jio IPO is anticipated next year, Reliance’s retail arm’s IPO may be delayed due to internal adjustment as they are familiar with the company’s plans. However, no official dates have been set for either offering.
Strong Financial Performance
Reliance Jio recently reported powerful financial growth, surpassing analyst predictions in the second quarter. The telecom giant achieved a quarterly net profit increase of 14.76%, totaling ₹6,539 crore, while revenue rose 7.67% to ₹31,709 crore. Over the years, revenue grew 18%, and net profit rose by 23.4% which makes it India’s top telecom provider. With ₹195.1, the company’s average revenue per user (ARPU) also improved and is supported by recent tariff hikes and a stronger subscriber base. The full impact of the tariff increase is expected over the next two to three quarters.
Expansion and Market Strategy
Reliance Jio is exploring opportunities in international markets by focusing on offering high-speed fixed wireless access (FWA) as a managed service rather than entering these markets directly as a telecom operator.This approach allows Jio to expand its reach without the infrastructure and regulatory hurdles of traditional telecom operations abroad.
Stock Market Movements
Reliance’s stock price recently saw a dip of about 4% in intraday trading, closing lower at ₹1,299.40. Over the past year, the stock has fluctuated, hitting a 52-week low of ₹1,149.08 and a high of ₹1,608.95. Despite recent volatility, the stock has gained around 15% over the last year, reflecting overall investor confidence in the company’s growth prospects.
Reliance’s strategic steps to list Jio in 2025 demonstrate the company’s aim to strengthen its financial position and support the ongoing growth of India’s telecom sector.
