Reliance Jio Infocomm Ltd (Jio), the telecom arm of Reliance Industries Ltd (RIL), might be going public soon! According to a report by Jefferies, a global brokerage firm, Jio could be listed on the stock market in 2025 with a valuation of a whopping $112 billion (around ₹9.35 lakh crore). This is great news for RIL investors, as Jefferies predicts a potential upside of 7-15% in the share price of Reliance Industries Ltd.
If this valuation holds true, Jio’s IPO would be a major event in the Indian stock market. A valuation of $112 billion would make Jio one of the most valuable companies in India. This would be a big success story for Reliance Industries and Jio, which has revolutionized the Indian telecom sector with its affordable data plans and widespread network coverage.
Jefferies discusses two possible ways for Jio to go public:
- IPO Route: In this scenario, Jio would issue new shares and sell them directly to investors. This is the traditional way for companies to go public.
- Spin-off Route: Here, Reliance Industries would create a separate company for Jio and then sell shares of that new company to the public. This approach might be preferred by some RIL investors as it wouldn’t dilute their ownership stake in Reliance Industries itself.
Jefferies believes that regardless of which route Jio takes to go public, it will be positive for RIL investors. The listing itself is expected to boost the share price of Reliance Industries. Additionally, if the spin-off route is chosen, investors could potentially buy shares of both RIL and the newly created Jio company.
Important Note:
It’s important to remember that Jefferies’ report is based on their analysis and predictions. The actual IPO details, including the valuation and timing, could be different. We will need to wait for an official announcement from Reliance Jio to know for sure.
Overall, the news of a potential Jio IPO in 2025 is exciting for the Indian telecom sector and the stock market as a whole. If Jio achieves the predicted valuation, it would be a landmark event and a major win for Reliance Industries.