New Delhi: Reliance Jio’s IPO is likely to be valued at $120 billion, said US brokerage Jefferies, citing optimism around the recent tariff hike by the telecom arm of Mukesh ambani-led Reliance Industries. Jefferies forecasted a potential listing for Reliance Jio in the calendar year 2025 or a spin-off of Jio similar to how Jio Financial Services was demerged from the parent entity. Institutional investors are likely to favour a demerger since it entails a bypassing of 20-50 per cent holding company discount, the brokerage said in a note.
RIL among world’s most influential firms
Public issue or spin off: Which is better?
While a public issue will be favoured, it will entail a 20-50 per cent holding company discount imposed by the Indian index operators to determine a company’s fair value, said Jefferies. Reliance Industries may try to meet regulatory norms for an IPO by introducing an offer for sale from private equity funds.
However, in the case of a spinoff, Reliance shareholders will receive proportionate holdings in Jio, according to Jefferies. On listing, RIL’s ownership will be halved to 333.3 per cent from 66.3 per cent at present. Since RIL and Jio Financial Services’ shares have performed well since the demerger, this may be the preferred listing route for Reliance Jio, Jefferies added.
Reliance share price history
RIL’s share price rose 0.049 per cent to Rs 3,170 apiece on Thursday.
RIL’s share price was up 1.90 per cent in the past 5 days.
The company’s stock jumped 8.81 per cent in the past month.
In the past 6 months, Reliance’s stock gained 16.55 per cent.
RIL’s share price was up 14.66 per cent in the past year.
The company’s share price jumped 22.38 per cent year to date.
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Reliance Ethane offshore loan
Reliance Industries unit Reliance Ethane Holding is eyeing a $ 500 million offshore loan for its Ethane business in a bid to make the business cost-competitive, Bloomberg reported. The Ethane business was a major contributor to the company’s profitability in the March quarter of FY24, amid a rising demand for plastics in India.
Reliance Jio IPO: Brokerage Jefferies forecasted a $120 billion valuation for the telecom arm of Mukesh Ambani led Reliance Industries. Markets Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
