Reliance JIO: Ready to launch the biggest IPO of the year with a $120 Billion Valuation

Reliance Jio Infocomm Ltd., the telecommunication division of Jio Platforms Limited, an integral part of Mukesh Ambani’s Reliance Industries, is gearing up for a massive IPO, aiming to raise ₹40,000 crore with a valuation of approx. ₹10 lakh crore ($120 billion). While details like the issue size have yet to be disclosed, the IPO is expected to be launched in the second half of 2025. The IPO is predicted to combine a fresh share sale with an offer-for-sale (OFS) from the company’s promoters and existing shareholders. Here is everything you need to know about Reliance Jio’s digital revolution across India. 

History of Reliance Jio

Reliance Jio was launched on 5th September 2016, empowering India’s diverse population with budget-friendly access to digital life. Today, Jio has initiated a digital revolution across India, changing how Indians connect to the world and shaping India’s digital future. After Jio’s launch, India became the number one worldwide consumer of mobile broadband data. Driven by Jio, India has overtaken the UK and the USA in mobile data consumption.

Today, Jio has over 500 million subscribers and is the largest operator in India and the second-largest single-country operator globally. It is also an integral part of Reliance Industries. Jio offers advanced connectivity, fibre, mobile devices, apps, and business solutions. Its solutions span diverse sectors such as commerce, communication, entertainment, financial services and education.

Industry Outlook

• India’s total telephone subscriber base stood at 1,203.69 million in May 2024. The teledensity of rural subscribers reached 59.59% as of May 2024.​
• As of May 2024, the wireless subscribers base stood at 1,168.95 million, and for Jio, it stood at 474.61 million.
• The number of wired broadband subscriptions stood at 41.31 million as of May 2024.
• In FY24, the gross revenue of the telecom sector stood at Rs. 2.4 lakh crore (US$ 29.00 billion).

Jio’s Revolution: Transforming India’s Digital Landscape

Launching a new telecom service was risky in a competitive market with established players like Vodafone Idea, BSNL, and Airtel. Still, Mr. Mukesh Ambani had a transformative vision to make high-speed internet budget-friendly and accessible for every Indian. Reliance had invested over $31 billion to bring this vision to life by 2016. Long queues formed outside Reliance Digital stores nationwide as millions scrambled to get a Jio SIM card. Jio made voice calls free for life, removing the decades-old concept of charging for talk time.

Data became the primary resource, and Jio’s low-cost plans democratised internet access. Within 170 days of its launch, Jio had more than 100 million users. Access to affordable data plans resulted in phenomenal growth in Indian mobile data consumption. Indians gained access to high-speed internet, fueling online entertainment,  digital literacy, and e-commerce growth. After this step, platforms like OTT services, YouTube, Facebook, LinkedIn, and online gaming witnessed overwhelming engagement. 

Jio did not just change entertainment; it also boosted India’s digital economy. E-commerce, digital payments, and online education thrived, with UPI transactions surging from ₹5,000 crore in 2016 to ₹15 lakh crore in 2024. JioFiber brought high-speed broadband to homes, boosting businesses, startups, and students.

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Reliance Jio Infocomm’s Financial Performance

In Q3’FY25, Reliance Jio Infocomm Limited’s  (RJIL) operating revenue grew 15.5% YoY, supported by the tariff hike for mobility services and strong growth in home connections. EBITDA grew by 17.7% YoY, with a substantial margin of 53.9%, reflecting higher revenues and efficient operations.

In Q3’FY25, Reliance Jio achieved an ARPU of Rs 203.3, driven by the impact of tariff revision and improving customer mix. Also, industry-leading customer engagement with per capita data consumption of 32.3 GB/ month. Data and voice traffic in Q3’FY25 increased 22.2% and 6.5% YoY, respectively. Further, the company reported a net subscriber addition of 3.3 million during the quarter. 

Top Competitors of Jio

Jio, Airtel, and Vodafone Idea constantly compete in the telecom sector. Each operator offers many postpaid and prepaid plans suited to different requirements. Whether you are looking for unlimited calling, high-speed data, or tariffs, these telecom providers have everything. When we compare the 28-day validity plans from Jio, Airtel, and Vodafone Idea, Jio charges Rs 249, Airtel Rs. 299, Vi Rs. 349, and BSNL Rs. 139 which makes Jio cheaper and more affordable for users. If Jio becomes a publicly traded company, it could change investors’ perceptions of other telecom firms, such as Airtel and Vodafone Idea.

In September, Jio lost close to 7.9 million wireless customers, followed by Vodafone Idea and Bharti Airtel, which witnessed a decrease of 1.5 million and 1.4 million users, respectively. On the other hand, BSNL’s user count increased by 849,493 in the same month. 

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Jio’s IPO is poised to be one of the largest public listings in Indian corporate history. The primary purpose of the offering is to capitalise on Jio’s dominance in the telecom sector, with its huge subscriber base and transformative digital initiatives. Jio has already transformed India’s telecom landscape through affordable data plans, cutting-edge technology, and widespread 5G deployment. The proceeds of the IPO are likely to be channelled into further expansion, 5G infrastructure, and digital innovation.