Shares of Bharti Airtel and Idea Cellular tanked up to 6% as Mukesh Ambani backed telecom company Reliance Jio Infocomm surprised with the all-new Republic day offer. Reliance Jio known for its competitive tariffs, once again on Tuesday entrapped the users and other telecom companies by unveiling a Republic Day offer which has slashed rates on its packages by Rs 50 while increasing per day data limit by 500 MB. With the recent modification in the tariffs, Reliance Jio is aiming to inch up its subscribers base further after turning profitable for the first time. Following the development, the stocks of India’s largest telecom company Bharti Airtel shed 5.99% to the day’s low of Rs 461.45 while the stock of Idea Cellular crashed 5.58% to the day’s low of Rs 93.85 on BSE.
Shares of Bharti Airtel opened flat at Rs 491, began to fell in the wee hours of trading hitting the day’s low around 10:30 am in the morning. Shares of Idea Cellular also started flat at Rs 99. The Aditya Birla group’s telecom company Idea Cellular is all set to announce its third-quarter earnings for the financial year 2017-2018 later today. Reliance Jio’s latest offer came after its 100% cash back offer, which was announced on 16 January. With these tariff packages, Jio has further increased the gap between its offers and those of incumbents which had been reducing before it. Jio’s popular Rs 399 plan had a validity of 70 days and offered daily data limit of 1GB, which under the Republic Day offer has become Rs 349 with validity remaining the same and the daily data limit increasing to 1.5GB. In comparison, Bharti Airtel’s similar plan is for Rs 399 with a validity of 84 days and a daily data limit of 1 GB.
Earlier on Friday last week, the newest telecom company Reliance Jio turned profitable in the third quarter of the financial year 2017-2018. Reliance Jio Infocomm Ltd reported its first-ever net profit of Rs 504 crore for the three-month period from October-December 2017, its second quarter of the commercial operations. In the July-September quarter of 2017-2018, Reliance Jio incurred a loss of Rs 271 crore. Reliance Jio’s total subscriber base stood at 16.01 crore as on 31 December 2017.