Reliance Industries Ltd unlikely to announce Jio and Retail IPOs at this year’s AGM: JP Morgan

Reliance Limited expectation of Retail and Jio IPO; Report presented by JP Morgan.

According to global stockbroker JPMorgan, Reliance Industries Ltd (RIL) is unlikely to declare the initial public offers (IPOs) of Jio and Retail. Moreover, at its annual general meeting (AGM) this year. As the AGM’s expectations remain focused on the prospective de-merger of the retail and telecom companies. Expectations run high as days line up before the AGM meeting. And consumer businesses are in the cutthroat competition to make it to the top 3 as per the AGM list.

“We do not expect any concrete timelines from this year’s AGM on the consumer businesses IPOs (Jio, Retail). Even though media reports have talked about IPOs of these businesses”. JP Morgan said in a note on Wednesday. RIL’s Annual General Meeting should be around July-end and the start of August. Medi reports speculate the possible announcement of a demerger of RIL’s retail and telecom businesses.

Reliance Industries had reportedly shown a massive increase in its net profits. Lest, with a total jump of around 23.56% leading to the amount being 60705.00 crore. By the end of the fourth quarter in March 2022, as opposed to the previous year 2021. Reliance Jio had shown a net profit increase of around 24% to 4173 crore by the end of the quarter, while on the other hand Reliance Retail had shown a downfall of 5 %. According to the report given by JP Morgan. The business evaluation has proven quite strong resulting in a higher average per revenue share(ARPU) of the Jio telecom business.

Reliance Industries Limited (RIL) unlikely to declare IPOs

“We have received strong interest from strategic and financial investors in our consumer businesses, Jio and Reliance Retail. We will induct leading global partners in these businesses in the next few quarters, and move towards the listing of both these companies within the next five years.” Mukesh Abani, CEO and Chairman of Reliance Industries Limited had said in his speech at the 2019 AGM meeting.

“Strong interest has been shown by str RIL’s core retail income increased 45 per cent in FY22, according to a recent Goldman Sachs study, with the company opening seven shops per day and doubling its warehouse space. “We think RIL’s existing supremacy in telecommunications and offline retail, paired with its alliance and Facebook’s online traffic dominance, can establish India’s fastest-growing internet platform,” it stated. “We expect RIL’s online income to climb to $14 billion by FY25, up from $3 billion in FY22,” says the report. Overall, we project core retail revenue to expand at a 37 per cent compound annual growth rate (CAGR). To $38 billion between FY22 and FY25E.”

Subscribe to our newsletter
Subscribe to our newsletter
Sign up here to get the latest news delivered directly to your inbox.
You can unsubscribe at any time