Reliance Jio IPO, Reliance Industries Telecom sector – Jio Infocomm is likely to list in 2022 as per CLSA. The CLSA expects it to be a valuation catalyst for the telecom sector in India. CLSA values the business at an EV (Enterprise Value) of $99 Billion that includes $5 billion EV for JioFiber, its broadband business.
This year will witness the auction of 5G spectrum and a likely mega initial public offer (IPO) through a separate listing of Reliance Jio from RIL, following the 33% pre-IPO stake sales, 10% to Facebook and 8% to Google in 2020, CLSA quotes.
Jio IPO Date
With Jio IPO coming this year, it will act as a telecom sector catalyst, the pre-IPO $20 billion deals can be valued at 10x Ebitda. The mega plans include fundraising of Rs 152,000 crores from a clutch of marquee global investors, including Facebook, Google, Intel Capital, Qualcomm Ventures, and top private equity players such as Silver Lake, Vista Equity Partners, General Atlantic, and KKR amongst others by selling a combined Jio 33% stake.
Commonly known as reliance Jio, termed as a potential big-bang, news surrounding Jio IPO comes at a time when the days of price wars in India’s debt-ridden telecom sector are drawing to a close in the recent downfall of prepaid tariff hikes taken by the Big 3 telecom platforms to boost revenues on the recently announced telecom reforms package by the government.
CLSA also expects the government to cut-short mid-band 5G spectrum base prices this year, failing to which it warned the upcoming spectrum sale won’t be successful. On the other side, 4G spectrum purchases of $11bn in 2021 were due for renewal, for which the upcoming 5G auction will succeed only if the price is cut from the excessive $7bn/100 Mhz for pan-India in the 3.3-3.6GHz band as per the brokerage.
Jio IPO Listing
Jio IPO coming separately from Reliance Industries Limited and is expected to be listed this year, experts believe it will be a game-changer for the telecom sector. With price hikes, debt-ridden telcos and spectrum prices, and auction issues on the note, the valuations are awaited to one of the much-awaited IPO listings of the year.