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Reliance Industries considers Jio IPO, market listing likely in next 2-3 years

The telco may be listed on Indian bourses after Reliance Industries' consumer businesses overtake its energy business in terms of revenue, according to a report.

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Reliance Industries mulls Jio IPO, may get the telco listed in next 2-3 years

Mukesh Ambani-led Reliance Industries Ltd (RIL) plans to list its telecom venture Reliance Jio Infocomm in the next two to three years, according to a report. The newest entrant in India's telecom space has become the third-largest in revenue market share in less than two years after it disrupted the market with its free voice and data plans in September 2016.

The telco may be listed on Indian bourses after Reliance Industries' consumer businesses overtake its energy business in terms of revenue, according to a report in Mint.

Reliance Jio is a 100% subsidiary of Reliance Industries Ltd.

Reliance Jio's entry triggered a price war among telcos when it launched services in September 2016, leading to consolidation in one of the world's most crowded telecom markets. Idea Cellular and Vodafone India announced the merger of their operations on March 20, 2017 creating an entity with a revenue of around Rs 77,500-80,000 crore.

In December 2017, Bloomberg first reported that Reliance Industries was planning to list its telecom venture.  

"Reliance Industries is holding internal discussions about preparing to list Jio as soon as late 2018 or early 2019," the report said.

"Jio may achieve a market capitalization of around Rs 50,000 crore ($7.8 billion) to Rs 70,000 crore through an IPO. That valuation assumes the company will be able to reach annual revenue of about Rs 25,000 crore by the time it lists," Arun Kejriwal, founder of advisory firm Kejriwal Research & Investment Services Pvt told Bloomberg in December.

Reliance Jio posted a positive net income in its first year of commercial operations, with net profit of Rs 722.96 crore in the financial year 2017-18. The telecom arm of Mukesh Ambani-led Reliance Industries saw its net profit for the March quarter marginally increase 1.2 per cent on a quarter-on-quarter (QoQ) basis to Rs 510.44 crore from Rs 504.38 crore in the preceding quarter.

The company reported 186.6 million subscribers as on March 31, 2018, up by around 83 million compared to 2016-17, with average revenue per user of Rs 137 per month.

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