The upcoming IPO of Reliance Jio is seen as a golden opportunity for investors. This multi-billion dollar deal will help Jio realize its true potential as a digital company. It will also reduce Reliance’s debt and achieve debt-free status by FY21. This deal will boost investor confidence and attract more investments.
The IPO of Reliance Jio is expected to launch in 2020. It is expected to raise about 1.53 lakh rupees in the first phase. The company is looking for investors from all over the country to invest in this IPO. The initial public offering price for the stock is expected to be around Rs.1.53 per share.
The Jio IPO is expected to be a catalyst for the sector’s valuation. Its recent $20 billion deal with thirteen businesses valued Jio at 10x enterprise value to earnings (EV/EBITDA). Analysts believe the company will list at a multiple of about 10x.
Reliance Jio may launch an IPO this year. It has already raised around Rs 1.53 lakh crore in venture capital, and the company has already collected almost Rs 50 billion from 13 investors. Facebook and Google each have an eight-percent stake in the company. Another important factor is the upcoming 5G spectrum auction.
Reliance Jio has a high level of credibility and success. The company has already attracted $10 billion in capital within the last month. By listing in the United States, the company could receive a higher valuation and give private investors higher returns. However, it has not yet decided where to list in the U.S. and how big it should be.
The company’s valuation could be impacted if the company is unable to launch JioMart. Its telecom business currently accounts for almost all of its revenues. However, this sector is heavily saturated and there is little scope for growth. However, the Indian Finance Minister has recently approved the direct listing of Indian companies on foreign stock exchanges. The details of this listing should be announced shortly.
In addition to its retail arm, Jio has over 400 million subscribers. It has over 14,500 stores throughout the country. Its stock has rallied over 35% since February and is among the top performers on the BSE index. The company also has a retail arm that sells groceries, clothing, footwear and consumer electronics. These two businesses will make Jio a hugely profitable company.