Reliance Jio's IPO: A Game-Changer in India's Telecom Sector

Reliance Jio's forthcoming initial public offering (IPO) is set to be a transformative event in the telecom sector, according to an extensive report by financial services firm CLSA. Boasting a subscriber base exceeding 500 million and claiming 42 percent of market share, Jio is well-positioned for substantial growth.

In August, Mukesh Ambani, Chairman of Reliance Industries, announced plans to file for the IPO, targeting a listing by the first half of 2026, pending regulatory approvals. CLSA detailed Jio's achievements over the decade, noting revenues and Ebitda figures of USD 13 billion and USD 7 billion, respectively, highlighting its sector-leading growth.

The report indicated that Jio's average revenue per user (ARPU) has increased by 63 percent due to tariff hikes but remains 17 percent below that of rival Bharti Airtel. CLSA anticipates Jio's ARPU growth will drive a 50-60 percent increase in revenue and Ebitda by the fiscal year 2028. Jio is valued at USD 128 billion in Reliance's sum-of-the-parts valuation, according to the report.

(With inputs from agencies.)