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Strong JioPhone Demand Boosts Reliance Industries Shares

Global rating agency Fitch had earlier said that JioPhone will attract first-time 4G users and help Jio gain revenue market share.

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Strong JioPhone Demand Boosts Reliance Industries Shares

Jio has also launched attractive plans to lure customers to switch to JioPhone.

Reliance Industries shares surged as much as 1.5 per cent on Monday after reports suggested that its newly launched 4G feature phone JioPhone received around 6 million bookings in the first tranche. Reliance Industries' share made a high of Rs 1,636.15 on Monday and was one of the top five gainers in Nifty. Reliance Industries' shares have surged over 50 per cent since Jio started its operations last September. Reliance Industries has invested around Rs 2 lakh crore in Jio, its telecom venture, which had amassed over 12 crore customers by June 30.

Analysts say JioPhone would help Reliance Industries grab a big share of 50-crore feature phone market in India. Jio had stopped the booking for JioPhone after saying that "millions have pre-booked" the JioPhone. Interested customers for JioPhone can register themselves on Jio's website to know when the next round of booking will start.

Jio has also launched attractive plans to lure customers to switch to JioPhone. Jio's plan, priced at Rs 153 for JioPhone, will offer its customers free voice calls, unlimited data and 300 free SMS in a month. Jio is offering the JioPhone effectively "free". Customers will get back their deposit of Rs 1,500 on return of the phone after three years.

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Global rating agency Fitch had earlier said that JioPhone will attract first-time 4G users and help Jio gain revenue market share. Some analysts also say that other telecom operators could also launch low-cost handsets to counter the competition from JioPhone.

As of 10:21 am, Reliance Industries shares were up 0.74 per cent at Rs 1,622, compared to 0.29 per cent fall in the broader Nifty. (With agency inputs)

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