Reliance Jio IPO valuation likely at ₹11 lakh cr - Will Mukesh Ambani's RIL gain; Bharti Airtel, Vodafone feel heat?
Mukesh Ambani’s Jio IPO: As primary market investors are eagerly waiting for Reliance Industries Limited's planned ₹30,000 crore Jio Platforms initial public offering, Dalal Street is also assessing the impact of one of the biggest IPOs of the country on the telecom sector players. The listing of Jio IPO will remain a key near-term monitorable as it would affect the sector's valuation, noted Motilal Oswal.
As Jio IPO is shaping up to be a mega IPO in the country and eyes to topple Hyundai Motors India listing with a potential valuation of around ₹11 lakh crore, let's understand its implication on telecom sector stocks.
Jio IPO valuations a key monitorable for sector re-rating and tariff hikes
The Jio IPO’s valuation will have a bearing on the sector’s valuation, according to Motilal Oswal Financial Services report. The completion of its listing and likely imminent closure of Vodafone Idea’s long pending fund raise would pave the way for a broad-based tariff hike. “We build in ~15% smartphone tariff hike (~INR50 on the 28-day unlimited data packs) from Dec’26,” stated the brokerage in its report.
Further re-rating of telecom sector stocks depends on higher long-term ARPU growth against MOFSL’s assumption of nearly 5% CAGR over FY29-36E. The brokerage maintained Bharti Airtel among its top pick in the telecom space. “We believe further re-rating of multiples hinges on higher long-term
ARPU growth (vs. our assumption of ~5% CAGR over FY29-36E),” read the MOFSL report.
How will Reliance Industries Limited gain from Jio IPO?
The Jio Platforms IPO will act as a massive value unlocking for Reliance Industries Limited (RIL), as per Motilal Oswal report. “Value unlocking through the impending JPL IPO, ramp-up of quick-commerce offerings under RRL, higher spreads in the O2C business, and optionality from faster ramp-up of FMCG, AI, Datacenter, and New Energy remain key triggers for the stock,” stated Motilal Oswal in its report.
Jio IPO
Jio Platforms IPO, which has backing from foreign investors like Meta and Google, is likely to fix its price to shares at ₹1,065-1,119 apiece, reported Reuters citing sources. The IPO would raise about ₹30,200 crore at the upper price band. With this, Jio IPO may surpass Hyundai Motor India’s IPO listed in 2024. Jio Platforms IPO follows the high profile listing of the National Stock Exchange of India (NSE) in September.
Jio Platforms is led by billionaire Mukesh Ambani’s son Akash Ambani. It operates Reliance’s telecom and digital business, which includes mobile services, fixed broadband, cloud, entertainment, enterprise technology and AI offerings. The company plans to use up to 275 billion rupees of the net proceeds to repay or prepay borrowings of its telecom subsidiary, Reliance Jio Infocomm.