Reliance Industries Limited’s (RIL) telecom unit Jio may launch an IPO next year i.e. by 2025. According to American brokerage Jefferies, this could raise the company to over $112 billion (about ₹9.3 lakh crore).
The brokerage said the IPO could add 7%-15% to Reliance Industries’ share price. Jefferies priced RIL shares at Rs. Given a ‘Buy’ rating with a target of 3,580. Reliance shares have gained over 22% so far this year. This is a better performance than the Nifty index, which has returned 12% in the period so far.
Ambani has two options for Jio’s listing on Dalal Street.
Jefferies said Mukesh Ambani has two options to list Jio on Dalal Street – an IPO (initial public offering) or Jio Financial Services, meaning institutional investors favor a spin-off.
There is also a possibility that Reliance may first spin-off Jio and then list it on the stock market through a price discovery system, the brokerage said.
Jio Financial was also listed through the same process. Experts and industry insiders are hopeful that information about Jio’s IPO could be given at Reliance Industries’ potential AGM next month.
Jio Financial was demerged from RIL in July
Reliance’s financial services business was demerged from its parent company Reliance Industries Limited (RIL) in July 2023. After the demerger, Jio Financial’s share price under the price discovery mechanism was Rs. 261.85 was fixed.
Shares of Jio Financial Services were down 0.10% today at Rs. 347.60 is being traded. Jio Financial stock has given a negative return of 0.76% in last 1 month. Whereas Jio Financial stock has given a positive return of 38.18% in the last 6 months.
More than 48 crore users of Jio
According to data released by TRAI in April, Reliance Jio has a total of 484.04 million or 48.40 crore subscribers. Whereas, Airtel has 275.41 million (27.54 crore) customers and Vodafone Idea has 126.44 million (12.64 crore) customers. While the government company BSNL has 24.98 million (2.49 crore) customers.