RIL shares jump on Jio handset news

Shares of Reliance Industries ( RIL) gained in early trade on Wednesday after reports that its subsidiary Reliance Jio is likely to launch the much-awaited 4G VoLTE feature phone this month. Brokerage HSBC pegged the price of the handset at as low as Rs 500, something that could usher in another wave of disruption in the telecom market.

RIL shares gained 1.20 per cent to end the day at Rs 1439.80. The scrip opened at Rs 1,427 and touched a high and low of Rs 1,445.90 and Rs 1,427, respectively.

The scrip hit a fresh 52-week high of Rs 1,465 on April 25, 2017 and 52-week low of Rs 932 on September 11, 2016.

The mobile launch — which some believe could be announced at parent Reliance Industries’ annual general meeting on July 21— would follow Jio’s likely announcement of a new tariff plan with aggressive price-points over the next couple of days with its 84-day Dhan Dhana Dhan offer — announced on April 11 — drawing to a close, people familiar with the matter said.

Jio is likely to price its 4G feature phone “at a paltry Rs 500 (sub-$8) to lure 2G subscribers to directly switch to 4G,” which implies “Jio subsidising each handset by as much as $10-15 (Rs 650-975),” Rajiv Sharma, HSBC director and telecoms analyst, said in a note seen by ET.