Reliance Industries Ltd (RIL) is exploring the possibility of launching its telecom unit Reliance Jio Infocomm in the second half of 2020. However, Reliance’s first priority will be to acquire investors for two Infrastructure Investment Trust (InvIT). These are the owners of the company’s towers and fiber accessories.
Sources said that there have been several meetings between the senior executives of the company, bankers and consultants in the last one month. This indicates the plan to bring an IPO until 2020. One source said, “Jio has told the bankers that the company is expected to move ahead and compete with the rival companies in terms of subscribers and this will also increase their income in the Indian market. The company is also in the way of launching its very own Fiber to Home network. This will increase the company’s IPO prospects as well.
Jio was the only telecom company to register profits in the March quarter 2019. Its profit was 65 percent and Revenue increased 56 percent compared to the same period a year ago, but in the quarter-wise quarter, the growth in profits was 1 percent. After the fourth quarter results of Jio, the brokerage firm, IIFL, gave an estimate of its enterprise value being approximately 6.3 billion dollars (4.41 lakh crore). Its competitor Bharti Airtel’s market cap was around 1.8 lakh crore rupees on Thursday.
After separation of tower and fiber operations and transfer of debt of Rs 1.07 lakh crore to two units, Jio’s net debt was about 67 thousand crores at the end of March. Jio entered the telecom market in September 2016. The company has boomed the number of subscribers rapidly through a very cheap tariff plan. It had also reduced tariffs for older telecom companies, which have been impacting their revenues and profits.
This year, Jio can also launch Jio Giga Fiber. This thing is being tested in many cities of the country. The preview of Jio Fiber is being offered and these offers are still free. It has a speed option of 100mbps or up to 50mbps. Apart from this, 1100 GB data is being given every month. This offer was for three months, but now it is likely to continue until its launch. This service will be launched in 1,600 cities of the country. Under this, customers will get a broadband-landline combo for just Rs 600. Under this service, Smart Home Network will get the option to add approximately 40 devices.