Could A Jio IPO Be In The Works? Bloomberg Report Says Yes.

Having consolidated it’s position in the Indian telecom market after the mammoth $31 billion dollar investment, an Inital Public Offering (IPO) for Reliance Jio might be in the works, as reported by Bloomberg.

The IPO for Reliance Jio might be out as soon as late 2018 or early 2019, as the company seeks to improve it’s financial performance before a share sale. The company isn’t profitable as of yet but had managed to accumulate 140 million subscribers till the end of September, making it the fourth largest wireless operator in India.

Reliance Jio is currently wholly owned by Reliance Industries Limited (RIL) headed by Mukesh Ambani. Although the business reported a net loss of $42 million in the quarter ending 30 September, it did manage to turn a profit before taxes and interests, which Ambani said is “ahead of our schedule in terms of the returns” in his 1 December event in New Delhi.

There is no certainty on the transaction as the deliberations over the IPO are still at a very early stage. However, a Jio IPO would mark a successful return for Mukesh Ambani to the Indian wireless market which he had to withdraw from following after a spilt in the group earlier.

Jio’s entry in the wireless market had been disruptive, owing to it’s free-for-life calls on the network. Jio had led to a price war in the wireless industry and triggered consolidation in the world’s most crowded wireless market.