Reliance Jio IPO: Reliance Jio Infocomm Ltd, the telecom arm of Reliance Industries Ltd (RIL), is gearing up for a significant initial public offering (IPO) in 2025, according to a recent note from Jefferies. The brokerage firm estimates Jio's potential valuation at over Rs 9.3 lakh crore.
Jefferies' note suggests that Jio could list with a valuation of $112 billion, potentially boosting Reliance Industries' share price by 7-15 per cent. The firm maintains a 'buy' rating on RIL stock with a target price of Rs 3,580 per share, indicating a 13 per cent upside from the last closing price of Rs 3,164.
RIL's stock has already climbed more than 22 per cent since January, outpacing the Nifty 50 index, which rose by 12 per cent. The note also mentions that the IPO could be structured as an offer for sale by minority shareholders.
RIL may spin off Jio and list it following a price discovery process, a move reportedly favored by both domestic and foreign investors.
In August 2023, RIL successfully spun off and listed its financial services arm, Jio Financial Services, using the price discovery method.
In a strategic move, Reliance Jio Infocomm announced new tariff plans in June, offering unlimited data to users. Jefferies noted that this move underscores Jio's focus on monetisation and increasing its subscriber base. Following Jio's lead, competitors Bharti Airtel and Vodafone Idea also introduced new tariff plans.
Recently, Reliance Jio revealed plans to raise tariffs by 12.5 per cent to 25 per cent, with new plans set to take effect from July 3. The company assured that existing users would not be impacted by the price hike, and JioBharat and JioPhone users will continue with their current rates. This marks the first time in approximately two and a half years that Jio has increased its mobile service prices.
ALSO READ | Share Market Today: Sensex Slides 250 Points; Nifty Around 24250. IT Stock Gains