Reliance Jio Infocomm eyes IPO in 2025: Report

Brokerage firm Jefferies also suggested that Jio could debut at a valuation of around $112 billion

Indian telecom firm Reliance Jio Infocomm is exploring the possibility of a major initial public offering (IPO) in 2025, according to an Indian newspaper. Commercial standard reported, citing a note from investment firm Jefferies.

The brokerage firm also suggested that Jio could debut at a valuation of around $112 billion, potentially contributing to a 7-5% surge in the share price of its parent company Reliance Industries.

“Jio has led the way in recent price hikes, unlike in the past, while keeping traditional handset prices unchanged, reflecting a focus on monetization and subscriber share gains. These steps pave the way for a potential listing in calendar year 2025,” Jefferies said.

Jefferies also suggested that the IPO could be an offer for sale by minority shareholders. According to the report, Reliance Industries could consider splitting Reliance Jio Infocomm and listing it separately after the price discovery.

Last month, Reliance Jio Infocomm announced a new range of mobile plans offering unlimited data, with the primary aim of boosting monetisation and expanding its subscriber base. Rival operators Bharti Airtel and Vodafone Idea have also announced revised tariff plans after Jio’s initial decision.

In April, Reliance Jio Infocomm announced that it had rolled out its 5G network across India, with over 108 million subscribers in the country.

The telecom operator noted that Jio’s True 5G network now carries nearly 28% of Jio’s wireless data traffic.

Meanwhile, the company’s 5G FWA offering, JioAirFiber, is now available in nearly 5,900 cities across India, Jio said.

Reliance Jio Infocomm is rapidly expanding its 5G network using Standalone (SA) architecture since October 2022. Meanwhile, rival operator Bharti Airtel had earlier said it was on track to cover the entire country with 5G technology by March 2024.

Last month, India concluded a delayed 5G spectrum auction, raising a total of INR113.4 billion ($1.3 billion), with the country’s three major operators spending a fraction of the sums they had previously spent in the previous 5G spectrum auction.

The Indian government has confirmed that it has sold a total of 141 megahertz of spectrum across eight bands, including 800 MHz, 900 MHz, 2.1 GHz, 3.3 GHz and 26 GHz.

Bharti Airtel was the highest bidder in the auction. The operator spent a total of INR 68.6 billion to acquire 97 megahertz of spectrum, followed by Vodafone Idea which acquired spectrum for a total of INR 35.1 billion and Reliance Jio Infocomm, which spent nearly INR 10 billion to secure additional 5G spectrum.

India concluded its first 5G spectrum auction in July 2022. Reliance Jio walked away with the largest share of the spectrum, having spent $11 billion. Airtel won spectrum worth $5.4 billion, while Vodafone received spectrum worth $2.4 billion. Finally, Adani bought spectrum worth about $27 million, which it will use to offer private 5G network services.