The much-awaited initial public offering (IPO) of Jio Platforms, Reliance Industries Ltd’s (RIL) digital services arm, opens for subscription this week, marking a landmark moment for India’s primary market. The ₹30,213-crore issue will open on October 21 and close on October 23, with Jio shares set to make their stock market debut on October 28.
Analysts believe the listing could unlock value for RIL shareholders by providing an independent market valuation for Jio, improving transparency in the conglomerate’s sum-of-the-parts (SOTP) valuation and potentially narrowing its holding-company discount.
The proposed IPO is more than a routine liquidity event and could mark a structural inflection point for RIL’s re-rating, according to Religare Broking. “The proposed IPO of Jio Platforms represents far more than a routine liquidity event-it serves as the definitive structural inflection point for group re-rating,” the brokerage said.
In a note, Religare Broking said the listing would establish an independent market valuation for RIL’s largest growth asset, improving transparency in its SOTP valuation and potentially narrowing the holding-company discount typically associated with conglomerates.
“Historically, conglomerate stocks carry a persistent holding-company discount due to opaque segment valuations and internal capital allocation ambiguity,” the brokerage said, adding that investors who wait until Jio’s listing could miss the initial phase of valuation expansion.
Religare Broking has a Buy rating on RIL with a target price of ₹1,696, implying an upside of 46.7% from the reference price of ₹1,156. It said investors could participate in Jio’s valuation discovery while retaining exposure to RIL’s other businesses, including retail, oil-to-chemicals (O2C) and new energy.
Jio IPO could unlock value for RIL shareholders
Jio Platforms’ ₹30,213-crore IPO comprises a fresh issue of 27 crore shares in the price band of ₹1,065–₹1,119 per share. The anchor book opens on October 19, while the public issue will remain open from October 21 to October 23. The listing is tentatively scheduled for October 28.
RIL currently holds a 66.43% stake in Jio Platforms, while Meta Platforms and Google hold 9.98% and 7.73%, respectively.
Centrum expects Jio’s revenue, EBITDA and profit after tax (PAT) to grow at compound annual growth rates (CAGRs) of 14%, 16% and 16%, respectively, between FY26 and FY29. It also expects a tariff hike of around 12% over the next three to four months to support average revenue per user (ARPU) growth.
The brokerage values Jio’s equity at around ₹11.5 lakh crore, based on 12 times its estimated FY28 EBITDA.
According to SBI Securities, Jio’s future growth could be supported by tariff rationalisation, subscriber migration from 2G to 4G and 5G, higher data consumption, home broadband expansion and greater enterprise adoption of cloud and digital solutions. AI-led services and digital applications could provide additional monetisation opportunities.
Up to ₹27,500 crore of the IPO proceeds will be used to prepay or repay outstanding borrowings of Reliance Jio Infocomm Ltd (RJIL), according to the offer documents.
SBI Securities said the proposed repayment could lower leverage and finance costs, strengthen cash flows and provide greater financial flexibility for future investments. Religare Broking also said lower debt and interest expenses could improve Jio’s free cash flow generation and support cash accruals at the parent company.
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