Jio IPO impact bubble over? Reliance shares down 2.5% after rising 5% in 3 days; should you buy Mukesh Ambani stock?
Reliance Industries shares declined on Friday, October 16, reversing part of their recent gains as investors assessed the implications of the proposed initial public offering (IPO) of Jio Platforms, the company's digital services subsidiary.
The Mukesh Ambani stock fell as much as 2.5% to an intraday low of ₹1,192.75 on the BSE, despite gaining around 5% over the preceding three sessions. It was trading close to its 52-week low of ₹1,152.30, recorded in October 2026, and remained around 26% below its 52-week high of ₹1,611.20, hit in January 2026.
Reliance Industries shares have lost more than 4% over the past month, 9% in three months, 12% in six months and 14% over the past year. Over five years, the stock has declined around 4%.
The latest weakness comes after Jio Platforms filed its red herring prospectus (RHP) for its proposed IPO, bringing the valuation of Reliance Industries' telecom and digital businesses into focus. With the public issue approaching, investors will be watching whether the listing plans can support sentiment towards the parent company's shares.
Jio Platforms' IPO is expected to be one of India's largest public offerings. The issue is scheduled to open for subscription on Wednesday, October 21, and close on Friday, October 23, 2026. The shares are expected to list on October 28.
The company has set a price band of ₹1,065- ₹1,119 per equity share and aims to raise between ₹28,755 crore and ₹30,213 crore.
Jio Platforms IPO was commanding a grey market premium (GMP) of ₹220 as of October 16, 2026. Against the upper price band of ₹1,119, this implies an estimated listing price of ₹1,339, translating into a potential listing gain of 19.66%. However, GMP is an unofficial indicator and does not guarantee listing performance.
The offering comprises a fresh issue of up to 27 crore equity shares, with no offer-for-sale component. This means existing shareholders will not sell their shares as part of the issue. The revised issue size is nearly 14% lower than the approximately ₹35,000 crore indicated in the draft papers.
Even at the revised size, the offering could surpass Hyundai Motor India's ₹27,870 crore IPO in 2024 to become India's largest-ever public issue by value.
Investors can bid for a minimum of 12 shares and in multiples of 12 thereafter. Eligible employees applying under the employee reservation portion will receive a discount of ₹54 per share.
Jio Platforms plans to use up to ₹27,500 crore from the proceeds to repay certain borrowings of its material subsidiary, Reliance Jio Infocomm Ltd (RJIL).
For Reliance Industries shareholders, the proposed listing could bring greater visibility to the value of its digital and telecom operations. However, the IPO announcement alone does not guarantee an immediate recovery in the parent company's stock, particularly as its price remains close to its yearly low.
Reliance Industries shares could see a recovery, with technical indicators pointing to improving momentum and Religare highlighting potential value unlocking from the proposed Jio Platforms IPO. Here are the key support and resistance levels and why the brokerage sees significant upside potential in the stock.
Jigar S Patel, senior manager – technical research at Anand Rathi Share and Stock Brokers Ltd, said Reliance Industries was showing signs of improving short-term momentum, with a bullish divergence emerging on the daily chart.
A bullish divergence occurs when a stock's price and a momentum indicator move in opposite directions, potentially signalling that selling pressure is easing. However, the pattern does not guarantee a recovery and needs confirmation through price action. Patel identified ₹1,160 as the immediate support level for the stock, making it an important level for investors and traders to monitor.
“As long as the stock sustains above this support zone, the possibility of further recovery remains intact. On the upside, ₹1,230 is the key resistance level,” he said.
According to Patel, a decisive breakout above ₹1,230, followed by sustained trading at higher levels, could attract fresh buying interest and open the door to further gains. Until then, the stock could remain range-bound as investors assess the strength of its recovery.
Meanwhile, Religare assigned a target price of ₹1,696 per share to Reliance Industries, implying a potential upside of 45%.
“We maintain a conviction BUY rating on Reliance Industries Ltd. with a Target Price of Rs. 1,696 per share. The convergence of a 2-year price and time correction, impending Jio price discovery, balance sheet optimization, and multi-engine earnings compounding creates one of the most compelling risk-reward setups in the market today. We advocate initiating exposure at current levels and accumulating on any market-driven corrections,” said the brokerage.
Religare's investment thesis centres on the proposed Jio Platforms IPO, which could help unlock value in Reliance Industries by giving investors an independent valuation of its digital business. The brokerage believes this could narrow the holding-company discount and support a re-rating of RIL shares.
Pranati Deva is a seasoned financial journalist with over a decade of experience in high-pressure newsroom environments, currently working as a Senior Sub Editor at LiveMint. Over the years, she has developed a reputation for sharp editorial judgement, a strong grasp of market dynamics, and the ability to translate complex financial developments into clear, engaging stories for a wide audience. <br><br> Her core areas of coverage include stock markets, leading listed companies, currencies, and commodities, with a particular strength in fast-paced, real-time market reporting. She is known for handling breaking market news, earnings-driven stock movements, and macroeconomic developments with speed, accuracy, and context—qualities that are essential in financial journalism. <br><br> Pranati has built a diverse and credible professional track record across some of India’s most respected news organisations, including MintGenie, CNBC-TV18, Business Standard and EconomicTimes.com. During her stints at these platforms, she produced data-driven market stories, curated and steered live blogs during volatile trading sessions, and conducted interviews with market veterans, fund managers, economists, and industry experts. Her work often combines on-ground reporting with analytical depth, helping readers make sense of daily market fluctuations and longer-term trends. An alumnus of the Symbiosis Institute of Media and Communications and Hansraj College, University of Delhi, Pranati brings a strong academic foundation to her journalism. She specialises in real-time financial reporting, with a keen focus on precision, balance, and insight, aiming to decode market movements in a way that is both informative and accessible to readers across experience levels.
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HomeMarketsStock MarketsJio IPO impact bubble over? Reliance shares down 2.5% after rising 5% in 3 days; should you buy Mukesh Ambani stock?
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