Reliance Jio Infocomm’s valuation is estimated to be between $100 billion and $120 billion
Indian billionaire Mukesh Ambani has reportedly started the process for an initial public offering (IPO) of Reliance Industries’ telecom subsidiary, Reliance Jio Infocomm.
Local press reports stated that the planned IPO is expected to raise between $4.08 billion and $4.66 billion, according to sources. It will include both an issuance of shares and an offer for sale (OFS) component, alongside a pre-IPO placement. Reliance Jio Infocomm aims to launch the IPO in the second half of the year, potentially making it India’s largest-ever public offering, according to the report.
Discussions for a pre-IPO placement are already underway. The size of the pre-IPO placement will depend on the scale of the new issuance, and the split between the OFS and fresh issue is still being finalized, the report added.
The OFS component is expected to be substantial, providing an opportunity for some existing investors to partially or fully exit the carrier. Currently, about 33% of Reliance Jio is owned by foreign investors, including Abu Dhabi Investment Authority, KKR, Mubadala and Silver Lake, who collectively invested nearly $18 billion in the company in 2020.
Reliance Jio Infocomm’s valuation is estimated to be between $100 billion and $120 billion. Recently, Jio Platforms partnered with Nvidia to develop AI language models, signaling its intent to lead in the AI space. Additionally, Jio has received regulatory approval to launch satellite internet services, further expanding its digital portfolio.
Reliance Jio remains India’s largest telecom operator, with 460 million wireless subscribers as of October.
In October last year, Reliance Jio Infocomm said it was taking a more measured approach to its 5G network expansion due to low capacity utilization and the delayed monetization of the technology. As a result, Jio is shifting its focus towards upgrading its existing 4G users to the more expensive 5G services, according to previous reports.
The current utilization of Jio’s 5G network stands at around 15%, according to sources familiar with Jio’s equipment suppliers. However, sources at Reliance Jio Infocomm claimed that actual 5G usage is more than double that amount. Jio’s 5G infrastructure is supported by equipment from Nordic vendors Nokia and Ericsson.
Meanwhile, a Jio spokesperson had confirmed that the company’s future investments in the 5G field will be determined by demand. The spokesperson also noted that Jio’s 5G network already covers over 90% of India’s population.
The report also highlighted that industry analysts anticipate that Jio’s next phase of 5G expansion will likely occur once competition from Airtel intensifies. Jio’s 5G user base currently reaches approximately 130 million, while Airtel currently has nearly 90 million 5G customers.
In September, Mukesh Ambani noted that Reliance Jio Infocomm had reached nationwide coverage with its 5G offering.
During RIL’s 47th annual general meeting, Ambani said that more than 85% of the 5G radio cells in the country are operated by Jio. “Jio has transformed India from 5G-dark to 5G-bright, creating one of the world’s most advanced 5G networks. Through unmatched spectrum holdings, 5G Standalone Architecture, and advanced technologies like Carrier Aggregation and Network Slicing, Jio is the only operator in India, and among the first globally, to fully harness 5G’s power,” he said, adding also that in just two years, more than 130 million customers have “embraced” Jio True 5G.
