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Reliance Jio IPO Expected in 2025 with $112 Billion Valuation, Says Jefferies

One potential big first public offering (IPO) for Reliance Jio, the telecom division of Reliance Industries Ltd., is scheduled for 2025. In a note, Jefferies stated that the listing’s worth could exceed ₹9.3 lakh crore. As per the brokerage, Jio has the potential to list at a valuation of $112 billion and increase the share price of Reliance Industries by 7–15 per cent.

“Jio’s leadership in the recent tariff hikes, in contrast to previous years, while maintaining the same tariffs for feature phones, demonstrates a focus on subscriber market share gains and monetization.” We believe that these actions provide a case for a potential public listing in CY25,” the statement read. The company can choose to list on Jio through an IPO or a spin-off, such as Jio Financial Services (JFS).

“The Holdco discount, which is 20–50% in India but 50–70% for conglomerates in Korea and Taiwan, is their main worry. Another issue is the significant mobilization of retail investors in the event of an IPO. According to Jefferies, “purchasing a portion of the shares offered by private equity funds after the spin-off could address the lower controlling stake in Jio on the spin-off.”

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The Holdco discount would be avoided, and higher value unlocking would be possible, benefiting RIL shareholders, it continued. If Jio is listed, the owner’s share would drop to 33.3%. Notably, the owner’s listing percentage is 45.8% in the recently spun-off JFS. The owner of JFS may choose to pursue the spin-off for Jio due to the company’s good stock price performance since the incident and the owners’ minority ownership position.