Reliance Jio, with over 40 crores subscribers, is one of the largest telecom service providers in the world. While the retail business of Reliance Industries- Reliance Retail sells groceries, apparel, footwear, and consumer electronics and has nearly 14,500 stores across India. Now, as per the reports, Reliance Industries is planning to come up with the Initial Public Offering (IPO) of its both Retail and Telecom business in the coming period. So, let’s discuss the news reports of the expected IPO of Reliance Retail and Jio in this article as we move ahead.
Expected IPO of Reliance Retail and Reliance Jio:
- Reliance Retail and JIO are likely to have their separate IPO from Reliance Industry Limited after the recent 33% stake sale to 13 investors, including 10% to Facebook and 8% to Google in 2020. The company is waiting for Ukraine and Russia war to be a bit stable.
- Both companies will be raising a staggering amount of Rs 50,000 crore to Rs 75,000 crore each through IPOs.
- The valuation of the Reliance Retail and Reliance Jio is expected to be around Rs. 8 Lakh crore and Rs. 7.5 Crore respectively.
- When private equity players like Google and Facebook have invested in Reliance Retail and Jio then the valuation is around Rs. 4.5 lakh crore to 5 lakh crore so, we can expect the appreciation to the 7.5 lakh crore to 8 lakh crores in 2 years.
- As the sales of the Reliance Retail are around Rs. 1.57 lakh crores and the EBIDTA Margin of the JIO is around 40-50%. Reliance Jio is also one of the biggest telecom service providers in the world.
- Listing is not only expected on NSE and BSE but also on the International Stock Exchange as well. And most probably, Reliance Jio can be listed on NASDAQ.
- The listing of this company will be very interesting to see is the huge amount of locking that will happen in this IPO.
The IPO of Reliance Retail and Reliance Jio could be one of the biggest IPO after Paytm and LIC. These IPO of Retail and Telecom businesses might provide a huge unlocking opportunity to the shareholders of Reliance Industries in the coming period. It is expected that Reliance Industries will announce the IPOs of Reliance Retail and Reliance Jio at the next AGM (Annual General Meeting). Hence one should closely watch this counter and should keep this stock on their radar.
Disclaimer: The information here is provided for reference purposes only and should not be misconstrued as investment advice. Under no circumstances does this information represent are commendation to buy or sell stocks or MF.