What Reliance Jio’s IPO may mean for Airtel

Reliance Jio IPO timeline remains uncertain despite speculations at Reliance’s AGM. CLSA notes that Reliance Jio’s IPO can impact Bharti Airtel’s stock positively. Jio’s parent company, Reliance Industries, holds 67% stake in RJio. CLSA predicts a $38 billion annual revenue for the sector by FY26. Both Jio and Airtel control 78% of India’s mobile market. While Jio leads in subscribers, Airtel has the highest ARPU. Bharti’s efficient capital allocation is expected to result in higher ROCE and $10bn operating cash flow by FY26. Jio and Bharti are expanding 5G services, while VodafoneIdea’s 5G rollout is pending.