Reliance Jio IPO May Achieve Over Rs 9 Lakh Crore Valuation: Jefferies
Reliance Jio IPO is anticipated to bring a significant valuation of more than Rs 9.3 lakh crore, according to a report by Jefferies. The telecom subsidiary of Reliance Industries Ltd (RIL) could list at a $112 billion valuation, potentially adding a 7-15 percent upside to RIL’s share price, Jefferies noted on July 11.
Potential Impact on RIL Shares
Jefferies maintains a ‘buy’ rating on RIL stock, with a target price of Rs 3,580 per share. This forecast suggests an upside of over 13 percent from the last closing price of Rs 3,164. RIL’s share price has seen a substantial increase of over 22 percent since January, outperforming the Nifty 50, which gained 12 percent in the same period.
IPO Structure and Strategy
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Jefferies suggests that the entire Reliance Jio IPO could be an offer for sale by minority shareholders. RIL might consider spinning off Jio and listing it post price discovery. Both domestic and foreign investors seem to favor the spin-off route for Jio’s listing.
In August 2023, RIL spun off its financial services arm, Jio Financial Services, and listed it using the price discovery method. This strategic move reflects RIL’s approach to maximizing shareholder value.
New Tariff Plans
In June, Reliance Jio Infocomm introduced a series of new tariff plans offering unlimited data. Jefferies highlights that this move underscores Jio’s focus on monetization and increasing its subscriber market share. Following Jio’s lead, competitors Bharti Airtel and Vodafone Idea also rolled out new tariff plans.
For More Details : About Jio Tariff Plans
Expert Opinions and Market Reactions
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