rajkotupdates.news :golden opportunity to invest jio ipo
rajkotupdates.news :golden opportunity to invest jio ipo – At the end of October 2021, Reliance Jio has a mobile customer base of 426.5 million, making it the largest telecom service provider in the nation.
According to brokerage firm CLSA’s research report, Mukesh Ambani could list his telecom company Reliance Jio this year with an enterprise value of nearly $100 billion. Following the 33% stake sale to 13 investors, including almost 10% to Facebook and 8% to Google in 2020, CLSA analysts predicted that RIL’s telecom unit Reliance Jio might undergo an IPO or separate listing. According to TRAI-released data, Reliance Jio had 426.5 million mobile subscribers as of the end of October 2021. Making it the largest telecom service provider in the nation.
Jio IPO major sector valuation catalyst
According to CLSA, Reliance Jio’s separate IPO could boost India’s telecom industry. “We anticipate expected Reliance Jio IPO would be a sector valuation catalyst with leader’s pre-IPO $20 billion agreements pricing itself at 10x EV/Ebitda,” the statement read. “When our selection Bharti Airtel with leading Arpus (Average revenue per user) and 15% CAGR in consol Ebitda trades at 25% discount on EV/Ebitda. Reliance Jio is valued by analysts at CLSA at $99 billion EV, which includes $5 billion EV for JioFiber, at 11.5x EV/Ebitda.
$99 Billion Value – rajkotupdates.news :golden opportunity to invest jio ipo
Reliance Jio’s enterprise value has been set at $99 billion by CLSA. On the other hand, the enterprise value of the Jio Fibre business has remained at $5 billion during the same period.
The benefit of a Hike in Tariff – rajkotupdates.news :golden opportunity to invest jio ipo
There is economic pressure on the telecom industry. It bears a heavy burden in terms of AGR dues and spectrum fees. The government has imposed a four-year moratorium. They will be obligated to pay interest during this time. As a result, telecom firms are raising the rate to help their financial situation. Jio, Airtel, and Vodafone Idea have all increased their rates by 20–25 percent over the past several days.
Jio vs. Airtel
According to brokerage houses, Reliance Jio anticipates having a total subscriber base of 435–438 million by the conclusion of the October–December quarter. In contrast, Bharti Airtel, the second-largest telecom firm, is predicted to announce a total subscriber count of 318–323 million. However, in ARPU, Bharti Airtel outperforms Jio, owned by Mukesh Ambani. ICICI Direct predicts Jio’s third-quarter APRU to be about Rs 151 per subscriber, up 5% from the previous quarter. In contrast, Bharti Airtel’s ARPU is expected to be Rs 164, up 6.6% from the prior quarter.
Reliance Jio had 39% of the telecom market share in 2021. But in the July-September quarter, Jio lost 11 million users due to non-payment due to pandemic-driven churn. High levels of inactive subscribers and a shortage of post-paid consumers are issues for the leader, according to CLSA. However, the brokerage firm stated that the debut of Reliance Jio’s entry-level smartphone. The “JioPhone Next,” created in partnership with Google in 2022. May prevent the migration of current 2G subscribers.
APRU at least 200 rupees required – rajkotupdates.news :golden opportunity to invest jio ipo
According to experts in this industry, if users on APRU, or Average Revenue, increase, their financial situation will also improve. Sunil Mittal, Airtel’s CEO, has stated numerous times that if telecoms want to survive and invest in more technological innovation. The APRU should be at least Rs 200. Hence, the financial standing of telecom firms will improve as it rises.
The rate will have to be reduced for the 5G spectrum auction.
According to CLSA, the government will lower the 5G spectrum price band. This auction won’t be a success if she doesn’t do it. The purchase of the 4G spectrum for $ 11 billion in 2021 was claimed to have been forced upon telecoms because they were required to renew it. This auction won’t be successful if the government does not lower the $7 billion per 100 Mhz price for the 5G spectrum. Let us inform you that this is the national tariff for 100 Mhz bandwidth.
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