5 reasons why Jio IPO in the Indian market seems unlikely
1. Due to US China trade war
At the moment there is no sign of the US-China tensions coming down and US President Mr. Donald Trump is always talking about putting the Legal section over China, so the Chinese firm is looking for an alternative market.
As you have heard an interaction of Donald Trump and Mukesh Ambani a few months ago when Donald Trump visited in India, in which Ambani talks about 5G and also, tells Trump that Jio is the first telecom company in the world which does not have any kind of Chinese’s investment and for this work, Mukesh Ambani Was highly appreciated by Trump
US investors always keep their portfolio diversified, so Jio can be an interesting alternative for US investors in the internet sector.
2. Jio IPO Listing at $100 billion (Jio ipo)
When Facebook, Silver Lake, KKR &Co., General Atlantic, and many big companies invested in the Jio platform, the valuation of Jio’s stock was around Rs 5 lakh crore and many big analysts suggest that Jio’s listing on the exchange at $100 billion which is more than double the valuation of its competitor Bharti Airtel and bringing IPO of such valuation is impossible in India.
If we convert $100 billion into Indian rupees, it will be about 7. 50 lakh crore rupees, and bringing IPO in India at such a valuation will prove to be very critical.
So Jio’s listing indicates the United States exchange NYSE or Nasdaq.
3. Big Private Equity (PE) firm investment in Jio (KKR, General Atlantic, etc.)(jio Ipo)
You must have heard in the last few days, after Facebook, many big private equity firms have invested in Jio platform, of which KKR and General Atlantic are also
And these investors will be seen as a promoter in the company.
KKR & Co. and General Atlantic are one of the top investment private equity firms in the world and the big private equity firms have the goal to ensure that the listing of the company is at a good valuation so that a return of 40 to 50% is available at the time of IPO.
And as I have told you in point No.2 that the listing of Jio will be at around 7.5 lakh crores which is a good valuation. When KKR and General Atlantic invested in Jio, the valuation of Jio at that time was 5 lakh crores. If we talk about their return, they will get 40 to 50% profit on the listing of Jio.
The investment of these two private firms indicates that the listing of Jio (Jio IPO) will be worldwide because of At such a high valuation listing is impossible in India
IPO is exit root of a promoter at high valuation
4 Second round Silver lake investment in jio (JIO IPO)
The second round of investment by US-based Silver Lake in Jio platforms Ltd. is particularly indicating towards its ambitions of a global IPO. because Silver Lake authorities invest in those company, which are listed in the United States. For example when we look at the kind of success the PE group had with Alibaba in 2014
5. Changing in FEMA ( Foreign Exchange Management Act.) Rule For Jio IPO
Now we will talk about whether the listing of Jio is possible on the foreign exchange. See if we talk about the current FEMA guidelines, a company to be listed on the foreign exchange, it must first be listed on the Indian Stock Exchange only then it’s listing May be possible on the foreign exchange but A few days ago, RBI has spoken about changing the guidelines of FEMA regarding the listing, in which a company will be allowed to list its company on the foreign exchange without listing on the Indian Stock Exchange.
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