After Tariff Hike, Reliance Jio Can Launch India's Biggest IPO


Mohul Ghosh

Mohul Ghosh

Jul 06, 2024


Reliance Jio, the telecom giant led by Mukesh Ambani, is reportedly gearing up for an initial public offering (IPO) that is poised to become the largest in India’s history.

After Tariff Hike, Reliance Jio Can Launch India's Biggest IPO

As per analysts, an announcement regarding the IPO is expected to be made at the upcoming Reliance Industries Annual General Meeting (AGM) in August. The IPO is anticipated to surpass the record set by the state-owned Life Insurance Corporation of India (LIC).

Tariff Hike: A Strategic Move

Recently, Reliance Jio announced a significant tariff hike, increasing the prices of its prepaid plans by up to 25%. This move was quickly followed by similar announcements from competitors Airtel and Vi. Jio also transitioned its unlimited 5G benefit to premium plans offering 2GB or more data per day. These adjustments aim to boost the company’s average revenue per user (ARPU), a critical metric for attracting potential investors.

Indicators of an Imminent IPO

Analysts suggest that these recent measures indicate Jio’s preparation for an IPO. Brokerage firm Jefferies noted that the rising focus on monetization could be a precursor to the telecom giant’s imminent listing. The strategic price increases and premium plan restructuring are seen as efforts to enhance financial performance and market appeal ahead of the IPO.

The Biggest Stock Market Debut in India

Should Reliance Jio proceed with its stock market debut, it will become the largest IPO in India. Current regulations require companies valued at ₹1 lakh crore or more to sell at least 5% of their shares during an IPO. With Jio valued at $133 billion (₹11.11 lakh crore) by Jefferies, a 5% stake sale would amount to around ₹55,000 crore. This would significantly surpass LIC’s ₹21,000 crore IPO, setting a new benchmark in the Indian stock market.

Competitive Landscape and Market Strategy

In the wake of Jio’s price hikes, a comparative analysis of recharge plans from Jio, Airtel, and Vi reveals the competitive dynamics in the telecom sector. As all major players adjust their pricing strategies, customers are keenly evaluating the benefits and costs of each plan.

Additionally, Hyundai Motor India Limited (HMIL) has also filed for an IPO, aiming to raise approximately $3 billion (₹25,000 crore). This highlights a robust IPO pipeline in India, with Reliance Jio’s potential debut being the most significant.


Mohul Ghosh
Mohul Ghosh
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