The report noted that Jio could launch the IPO due to the potential exit of some of its current investors
Indian carrier Reliance Jio Infocomm is likely to make its initial public offering (IPO) in 2025, when global private equity firms may look to exit their investment in the company, local newspaper The Economic Times reported, citing analysts.
According to the report, investors including Vista Equity Partners, KKR, PIF, Silver Lake, L Catterton, General Atlantic and TPG had made investments in the domestic telecom operator in 2020.
KKR and Vista Equity Partners each own a 2.3% stake in Jio Platforms, while Silver Lake owns a 2% stake. General Atlantic owns a 1.3% stake in the operator and TPG Capital owns nearly 1% of the telco.
Other major investors include Facebook (10%) and Google (7.7%). Reliance Industries currently holds a 67% stake in Jio Platforms, the holding company that owns Reliance Jio Infocomm.
Jio is currently pushing for a minimum tariff increase of 20%. The report noted that without such an increase in telecommunications tariffs, the valuation of the IPO would be affected. According to brokerage firm Jefferies, Jio Platforms is valued at $75 billion. This valuation is expected to go up significantly after the much anticipated tariff hike later this year.
Reliance Jio Infocomm recently completed the rollout of 5G technology in India. The operator has been rapidly expanding its 5G network using Standalone (SA) architecture since October 2022.
Reliance Jio had secured a mix of wireless spectrum for 5G across the 700 MHz, 3.5 GHz and 26 GHz bands. Jio is the only Indian operator with spectrum in the 700 MHz band.
Jio also said that its 5G Fixed Wireless Access (FWA) service, dubbed JioAirFiber, will have pan-India coverage within the first half of 2024, according to previous press reports.
The carrier’s 5G FWA service is already available in over 4,000 towns and cities across India.
The telco had announced the launch of its 5G FWA service in eight cities across the country in September 2023. The service was initially launched in the cities of Ahmedabad, Bengaluru, Chennai, Delhi, Hyderabad, Kolkata, Mumbai and Pune.
