Reliance Industries shares started financial year 2017-18 with a positive note, surging as much as 4.5 per cent to log a new 52-week high of Rs. 1,380.50, after the conglomerate’s telecom arm – Reliance Jio – announced extension of its Prime membership registration till April 15. Billionaire Mukesh Ambani-owned Reliance Jio, the newest telecom company in India, on Monday announced it has notched an unprecedented 72 million paid subscribers under the Prime membership. Shares in incumbent telecom operators Bharti Airtel and Idea Cellular were struggling with losses up to 3 per cent in early deals on Monday as investors were worried about their business outlook amid free voice and aggressive data offers of Reliance Jio.
Reliance Jio, whose free extended promotional offer ended on March 31, 2017, has announced a complimentary offer for three months for those who paid Rs. 303 prior to April 15. Jio said it has extended the deadline for purchasing Rs. 303 (and other) plans till April 15th, “considering the unprecedented demand”.
Analysts said Reliance Jio’s extension of Prime membership deadline was positive for the company. (Read: Jio’s new pricing to continue to bleed industry, says industry body)
S V Prasad, chairman of Chime Consulting, told NDTV Profit that Reliance Jio has shown very high percentage of customer retention and this bodes well for future retention.
Reliance Jio also announced the Summer Surprise for its Prime members.
“Every Jio Prime member when they make their first paid recharge prior to 15th April using Jio’s Rs. 303 plan (or any higher value plan) will get services for the initial three months on a complimentary basis. Your paid tariff plan will be applied only in July, after the expiry of the complimentary service,” chairman Mukesh Ambani said in a letter to customers.
Jio had launched the inaugural free voice and data plan in September last year, and in December, it extended the freebies till March 31, 2017.
At 9:47 am, Reliance Industries was the top Nifty 50 gainer, up 3.93 per cent at Rs. 1,372.75, while Bharti Airtel was down 2.54 per cent, Idea Cellular down 0.35 per cent and Bharti Infratel down 1.66 per cent.