Reliance Jio IPO – Listing Likely in 2025 at $112 Billion Valuation, Says Jefferies

News flow and expectations about Jio’s listing have fuelled Reliance Industries’ share price increase of 22% year-to-date. A public listing may value Jio at $112 billion, according to Jefferies analysts, therefore generating a 7-15% increase in the stock value of Reliance. The salient features are listed here:

Jefferies advises Jio to IPO with a valuation of $112 billion

Should Jio’s company separate from Reliance Industries, the fair value for Reliance Industries share prices would be roughly Rs3,580 per share, therefore reflecting a 15% increase.

IPO as opposed to a spinoff

Jefferies takes two scenarios into account –

Fair value, should Reliance Industries decide to pursue an IPO, would drop to Rs3,365 per share (with a 20% holding company discount). Vertical Spinoff Route – Jio can be listed with no holding company discount following price discovery. Though their stake in Jio would be smaller—33.3% adjusted for Reliance Industries 66.3%—Reliance shareholders would gain from improved value unlocking.
Jefferies thinks Jio’s emphasis on monetization and subscriber market growth will enable a public offering in 2025. Leading by example in recent rate increases, Jio indicated its intention. Whether via an IPO or spinoff, Jio’s listing might be a noteworthy occasion.