Mukesh Ambani’s Reliance Jio will have 50 cr mobile customers by this time; IPO in a few years

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Published: June 17, 2020 3:55 PM

Mukesh Ambani's Reliance Jio is likely to sign up half a billion mobile subscribers by 2025 which amounts to nearly 50% of the Indian mobile phone user base.

Mukesh Ambani led RIL raises total investment of over Rs 1.04 lakh crore by selling a combined 22.28% equity stake in Jio PlatformsAs it continues to become a force to reckon with in Indian telecom sector, Reliance may soon look at an IPO for its telecom arm.

Mukesh Ambani’s Reliance Jio is likely to sign up half a billion mobile subscribers by 2025 which amounts to nearly 50% of the Indian mobile phone user base. “At our last model update in December, we proclaimed Reliance Jio the new king of Indian telecommunications. Since then, we have seen a multitude of international investors reach the same conclusion,” money management firm Bernstein said in a report on Wednesday. As it continues to become a force to reckon with in Indian telecom sector, Reliance may soon look at an IPO for its telecom arm. An initial public offer (IPO) of Jio may happen sometime over the next few years as its market share approaches 50 per cent. “By then ARPUs (average revenue per user) will have improved and we expect service revenue will double over the next three years,” the report said.

Of late, the company has become an investment magnet with the company having attracted ten foreign investors in the span of less than two months. Reliance Industries has so far raised Rs 1.04 lakh crore by selling equity stakes in Reliance Jio Platforms to investors including the US-based social media giant Facebook. 

As India’s internet user base continues to swell, many companies have been attracted to India’s telecom sector. The country promises a huge market for e-commerce and digital growth and Facebook announced that it will buy 9.99 per cent equity stake in Reliance Industries Ltd’s telecom arm for Rs 43,573.62 crore to get a pie of India’s burgeoning market. This was followed by a further Rs 60,753.33 crore worth of stake buys spread across nine different private equity investors. Reliance has so far monetised 22.38 per cent of Jio Platforms. “While we expect strategic cooperation between Facebook and other parts of the Reliance Group, we believe most of the other investments are passive,” the Bernstein report said. However, with these investments, Reliance gets access to much needed capital as it looks to cut down its debts. The cut for investors lies in the fact that they will now get early access to the leading telco platform in India.

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