New Delhi, June 21: Reliance Industries Ltd (RIL) is considering to venture into an initial public offering (IPO) for its Reliance Jio Infocomm unit in the latter half of 2020.As per an The Economic Times Report Multiple meetings have taken place over the last month which indicates that the IPO initiative has picked up pace.
“The telecom company has informed bankers that it expects to topple competition on the subscriber front shortly, which would bring in more revenue, and roll out its fibre to home (FTTH) network, all of which will ensure a successful IPO,” sources told The Economic Times.
The report states that the company was the only telcom player to post profits in the March quarter, which went up 65 per cent from the year earlier.The telco started its commercial operations in September 2016, but reported its first numbers at the end of March 2017.“Since regulatory guidelines state that the telco can be listed after three years of financial reporting, the IPO cannot come before March 2020. But that will be too early — it’s likely late 2020 or even in 2021,” said one of the people cited above.Besides needing funds to expand its 4G network and roll out of home broadband. The company need to prepare for rolling out 5G spectrum and subsequently upgrade its network to support the next generation technology.Within three months, Jio has managed to gain 306.72 million subscribers for a 26.4 per cent market share at the end of March. As per a report by brokerage Emkay, the revenue market share of Jio stood at 31.7% in that quarter.
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