No Jio IPO plans for now, Reliance Industries rules out ‘speculations’

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Updated: December 13, 2017 10:32:02 AM

Ruling out any possibility of an initial public offering for Jio Infocomm in near future, Reliance Industries termed the media reports about the same as speculative.

Reliance Jio Plans, Reliance Jio, Reliance Jio Mukesh Ambani, Reliance Jio data plans, Reliance Jio unlimited data plans, Reliance Jio no daily limit data plans,Reliance Industries termed the report as speculative and ruled out any such possibility in the near future. (Image: PTI)

Ruling out any possibility of an initial public offering for Jio Infocomm in near future, Reliance Industries termed the media reports about the same as speculative. “We would like to state that the said article is speculative and as a policy, we do not comment on media speculation and rumours,” an RIL  spokesperson issued a statement on Tuesday. RIL officials told The Economic Times that the company had all the cash needed to repay debt and for the future expansion. A report by Bloomberg on Tuesday stated that the mobile operator Reliance Jio Infocomm is weighing an initial public offering. The report also cited unidentified sources saying that Reliance Industries, the conglomerate backed by tycoon Mukesh Ambani, is holding internal discussions about preparing to list Jio as soon as late 2018 or early 2019. Jio, which hasn’t made a profit since its official launch last year, is targeting to improve its financial performance before any share sale, the report stated further. Jio reported a net loss of Rs 271 crore in the quarter ended September 30, though the business made a profit before interest and taxes over the period. The wireless operator is “ahead of our schedule in terms of the returns” generated, Ambani has said at a December 1 event in New Delhi. Jio has accumulated more than 138.6 million subscribers, making it the fourth-largest operator at the end of September, according to data from the telecom regulator.

Ambani has a net worth of nearly $40 billion, according to the Bloomberg Billionaires Index. Shares of Reliance Industries have jumped 70 percent this year, giving the company a market value of about $93 billion. India’s benchmark index is trading near an all-time high, which has helped fuel a record IPO haul in the country. First-time share sales in the country have raised 750 billion rupees ($11.6 billion) this year, more than double the previous record set in 2010, according to data compiled by Bloomberg.

Bharti Airtel Ltd. this year agreed to absorb Tata Group’s mobile-phone business, while Vodafone Group Plc and Idea Cellular Ltd. announced they would merge their local operations to create the nation’s largest wireless operator. Despite being the newest entrant, Jio has accumulated more than 138.6 million subscribers, making it the fourth-largest operator at the end of September, according to data from the telecom regulator.

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