Reliance Jio IPO GMP: A Rs 40,000 Crore Mega Offering

      
                    WhatsApp Group                             Join Now            
   
                    Telegram Group                             Join Now            
   

Reliance Jio IPO GMP: The process of IPO of Jio, the telecom unit of Reliance Industries Limited (RIL), has been started. According to sources, this IPO can be between Rs 35 thousand to Rs 40 thousand crore. Reliance Group aims to launch in the second half of the year. This will be the biggest IPO ever in the country. The company has started discussions with investors for pre-IPO placement.

Reliance Jio IPO GMP
Reliance Jio IPO GMP

Reliance Jio IPO GMP: What is Said in the Report?

Reliance Jio IPO GMP
Reliance Jio IPO GMP
  • According to a report, its Reliance Jio IPO GMP may come soon. It is believed that the size of this IPO could be around Rs 35,000-40,000 crore.
  • It has been said in the report that in this Reliance Jio IPO GMP, shares will be issued by the promoters and shareholders of the company through new share sale and offer for sale (OFS). The company can also keep the pre-IPO placement clause in its issue. The interesting thing is that the IPO may hit the market in the second half of the current financial year.

Jio is the Largest Telecom Operator

Reliance Jio IPO GMP
Reliance Jio IPO GMP

Reliance Industries has spent about Rs 26 thousand crore in 5 years on telecom, internet, and digital business. Reliance Jio is the country’s largest telecom operator, with 47 crore wireless subscribers at the end of October. Due to an increase in tariff in June last year, there was a jump in its profit in the September quarter.

Jio Financial Performance

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 an 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 released Q2FY25 results last month on 14 October.

Financial Services were Listed in 2023

Earlier, Reliance’s financial services business was separated from its parent company Reliance Industries Limited (RIL) in July 2023. After the 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 the Bombay Stock Exchange (BSE) at Rs 265. At the same time, the share was listed at Rs 262 on the National Stock Exchange (NSE). However, its share has given a return of Rs 68.85 (29.25%) in 1 year. It has reached Rs 304.

It is being said that if Reliance Jio comes with a Reliance Jio IPO GMP with a size of Rs 35,000-40,000 crore, then it can be the biggest IPO in history. Till now, IPA of such a big size has not come in India. Reliance Jio can have a valuation of 120 billion dollars (about Rs 10 lakh crore) Because RIL is a central investor in next-generation technology including supportive retail. Brokerage firms are giving the estimated valuation of Reliance Jio at $100 billion (Rs 8.5 lakh crore).

Investors Have a Great Interest in the Reliance Jio IPO GMP

According to the report Preliminary talks for pre-IPO placement have already begun. It is believed that this issue will receive tremendous interest in the primary market, despite its large size. According to sources mentioned in the HBL report, bankers believe that there is no possibility of any problem in subscription to the issue.

Leave a Comment