New Delhi: According to a report by global brokerage Jefferies on July 10, Reliance Industries' telecommunications division, Reliance Jio, may be listed on the stock exchanges in 2025 with an estimated worth of $112 billion. Jefferies suggested that RIL might consider separating Jio Platforms and taking it public once a price has been determined.
If Jio were separated from Reliance Industries, our estimated fair value for RIL shares would be Rs 3,580. Jefferies mentioned that if RIL were to undergo an IPO, its fair value would decrease to Rs 3,365 in the base scenario after considering a 20 percent holding company discount. In the event of a spin-off, Jefferies' target price suggests a 14 percent increase in their most likely scenario.
In their optimistic scenario, they estimate the value of RIL stock at Rs 3,700, indicating an 18 per cent increase. In terms of operations, Jio was the initial telecom company to declare increases in tariffs. Nevertheless, the feature phone rates remained the same. Analysts noted that this demonstrated Jio's emphasis on making money and increasing its share of the subscriber market.
In our opinion, these actions present an argument for a potential IPO in CY25. Jefferies suggested that RIL might consider conducting an IPO or spinning off Jio, similar to what it did with Jio Financial Services (JFS).
Jefferies, an international brokerage firm, released a report on July 10 indicating that Reliance Jio, a subsidiary of Reliance Industries, could potentially go public in 2025 with a projected value of $112 billion. Jefferies proposed that RIL could think about splitting up Jio Platforms and introducing it to the stock market after determining a price.
If Jio and Reliance Industries go their separate ways, we predict that the value of RIL stock will be Rs 3,580. Jefferies reported that in the base scenario, the fair value of RIL would drop to Rs 3,365 if it were to become publicly traded, considering a 20 percent discount for being a holding company. In the event of a spin-off, Jefferies' target price indicates a 14 per cent rise in their best case scenario.
They value RIL shares at Rs 3,700, indicating a growth of 18 percent. In terms of functionality, Jio was the first telecom company to announce tariff hikes. However, it kept the feature phone plan prices unchanged. Analysts highlighted that this showed Jio's focus on driving revenue growth and expanding its subscriber base.
We believe that these actions are laying the groundwork for a possible IPO in 2025. Jefferies proposed that RIL could potentially think about launching an IPO or separating Jio, just like it did with Jio Financial Services (JFS).
FIRST Business Portal addressing the potential of business capability of North East Region.
