📷 Image Credits: Moneycontrol
Reliance Jio Infocomm Ltd, the telecom unit of Reliance Industries Ltd, is gearing up for a potential mega IPO in 2025 with a valuation exceeding Rs 9.3 lakh crore, as per a recent note by Jefferies. The company could list at a $112 billion valuation, which could lead to a 7-15 percent increase in Reliance Industries’ share price. Jefferies also reiterated a ‘buy’ rating on RIL stock with a target price of Rs 3,580 per share, indicating a growth of over 13 percent compared to the last closing price of Rs 3,164.
Jefferies highlighted that the entire IPO may involve an offer for sale by minority shareholders, suggesting that RIL might consider spinning off Jio and listing it post a price discovery process. Both domestic and foreign investors are showing a preference for the spin-off approach for Jio’s listing. It is worth noting that in August 2023, Reliance Industries successfully spun off its financial services arm, Jio Financial Services, and listed it using the price discovery method.
Moreover, the recent announcement of new tariff plans by Reliance Jio Infocomm, offering unlimited data to users, reflects the telecom company’s strategy to focus on monetization and capturing a larger share of the subscriber market. Following suit, competitors like Bharti Airtel and Vodafone Idea have also revealed new tariff plans in response to Jio’s move.
Analysts anticipate that clarity on the Jio IPO may emerge during Reliance Industries’ upcoming annual general meeting (AGM), considering the telco’s heightened focus on monetization as a potential indicator of an imminent listing. The IPO of Reliance Jio Infocomm could potentially have a significant impact on the telecom and tech sector in India and reshape the market landscape in the coming years.
