Tariff hikes and 5G monetisation moves hint Jio’s headed for IPO
Jio Infocomm taking the lead in raising mobile tariffs and moving to monetise its 5G business could be an indication of the telecom market leader readying for an initial public offering that could be India's largest, analysts said. Some of them expect an IPO as soon as early next year.
Analysts and industry executives expect clarity on Jio's big-bang IPO at parent Reliance Industries Ltd's annual general meeting, likely next month.
«The stage is now set for the telecom market leader's much awaited IPO in the near future,» said Mayuresh Joshi, head of equity research at Indian unit of US-based William O' Neil & Co.
Joshi and other analysts predict the tariff hike and money from the 5G business to boost Jio's average revenue per user (ARPU), a key performance metric for telecom firms, in the coming quarters, making it more attractive to potential investors ahead of a share sale.
Brokerage firm Jefferies said it would look out for any developments on Jio's listing at the upcoming RIL AGM, adding: «Rising focus on monetisation could be a precursor to its imminent listing.»
Jio did not respond to ET's request for comment.
Following the latest tariff hike and 5G monetisation moves, Jio is valued at around $133 billion (₹11.11 lakh-crore), according to Jefferies.
At this valuation, a Jio IPO could turn out to be India's largest by far. Current rules require companies with a valuation of ₹1 lakh crore or more to sell at least a 5% stake in the IPO (for smaller companies, the minimum is 10%), which means Jio's share
