Reliance Industries Share Price: Shares of Reliance Industries Limited (RIL) gained sharply on Tuesday, rising 2.49% to close at ₹1,216.00 on the NSE. The stock has advanced around 4.3% over the past two trading sessions.
The recent rise comes amid increasing expectations surrounding the proposed Jio Platforms IPO and greater confidence from global brokerage firm Jefferies. Investors are closely watching the public issue as it could provide an opportunity for Reliance Industries to unlock value from its Jio business.
The proposed Jio Platforms IPO would also mark the first public offering of a consumer-focused business from the Reliance group. It would be the Ambani family’s first public issue since the Reliance Power IPO in January 2008.
Jio IPO Could Help Unlock Value for Reliance
Analysts believe the Jio Platforms IPO could provide the market with a clearer valuation for the business through price discovery. The proposed fresh issue of around 2.93% could help establish a market-based valuation for Jio.
A successful IPO could also help narrow the holding company discount applied to Reliance Industries. However, the future movement of RIL shares is expected to depend significantly on the valuation assigned to Jio Platforms and the level of investor demand during the IPO.
Jio IPO May Open Between October 21 and 23
Preparations for the Jio Platforms IPO are reportedly nearing completion. The issue is expected to open for subscription between October 21 and October 23.
The anchor investor book could open on October 19, while the company’s shares are likely to be listed on October 28. However, the final schedule may change depending on market conditions.
The final IPO price and valuation have not yet been determined.
₹27,500 Crore Debt Repayment Planned
The proposed Jio Platforms IPO is expected to comprise an entirely fresh issue of shares. A significant portion of the money raised through the issue is expected to be used to repay or prepay approximately ₹27,500 crore of outstanding debt owed by Reliance Jio Infocomm, a subsidiary of Jio Platforms.
The remaining proceeds are expected to be used for general corporate purposes.
Jefferies Raises RIL Portfolio Weight to 7.5%
In its report dated October 6, Jefferies increased the weight of Reliance Industries in its model portfolio to 7.5%.
The brokerage said RIL’s shares remain attractive at current valuations. According to the report, the stock is trading at around 8.4 times one-year forward EV/EBITDA, approximately 23% below its 10-year average.
The developments around the Jio Platforms IPO are therefore being closely watched by investors as the proposed listing could provide greater visibility into the value of Reliance’s consumer-focused business.
Disclaimer: This article is intended solely for informational purposes and should not be considered investment advice or a recommendation to buy or sell any shares, IPOs, mutual funds, precious metals, commodities, REITs, InvITs, alternative investment products or crypto assets. Investors should conduct their own research and consult a qualified financial adviser before making investment decisions.