Reliance Jio Infocomm Ltd, the telecom unit of Reliance Industries Ltd, could be headed for a mega IPO in 2025, with a potential valuation of more than Rs 9.3 lakh crore, a Jefferies note said.
“Jio leading the way in the recent tariff hikes unlike in the past while keeping feature phone tariffs unchanged shows focus on monetization and subscriber market share gains. These moves create a case for a possible public listing in CY25 in our view,” said Bhaskar Chakraborty of Jefferies.
Jio ‘could list at $112 billion valuation’ and add ‘7-15 percent upside’ to the Reliance Industries share price, Jefferies said in the note on July 11.
The brokerage maintained a ‘buy’ rating on the RIL stock, with a target price of Rs 3,580 per share. This implies an upside of more than 13 percent to the last closing price of Rs 3,164. RIL’s share price has surged more than 22 percent since January, outperforming the Nifty 50, which gained 12 percent.
Further, Jefferies said that the entire IPO could be an offer for sale by minority shareholders. RIL could look to spin off Jio and list it after a price discovery, the brokerage said, adding that both domestic and foreign investors appear to favour the spin-off route for Jio listing.
In August 2023, Reliance Industries spun off its financial services arm Jio Financial Services, and got it listed with price discovery method.
In June, Reliance Jio Infocomm announced a series of new tariff plans that would offer users unlimited data. Jefferies said the tariff move indicates the telecom firm’s focus on monetisation and gaining subscriber market share. Following Jio, rivals Bharti Airtel and Vodafone Idea also unveiled new tariff plans.
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