Reliance Jio Likely to Enter Dalal Street in 2025, Jefferies Forecasts Rs 9.3 Lakh Crore Valuation

The telecom arm of Mukesh Ambani-led conglomerate, Reliance Jio Infocomm Ltd., is likely to make a mega entry in Dalal Street in 2025. Money Control, citing a Jefferies note, reported that the Initial Public Offerings (IPO) could be valued at Rs 9.3 lakh crore.

Jefferies said that Jio 'could list at $112 billion valuation' which will lead to 7-15 per cent increase in the value of RIL, the parent company share price.

Reliance Jio has been in the headlines lately as the telecom giant initiated the tariff increase across its plans, a move to surge their average revenue per user (Apru). The step will likely benefit them in 5G expansion.

The international brokerage firm gave a 'buy' rating on the RIL shares, with a price of Rs 3,580 per share. The IPO listing of the telecom giant will result in around 13 per cent increase to the last closing price of Rs 3,164. The IPO listing would likely be welcomed by both national and international investors.

On a year-to-date basis, the shares of the company have delivered a return of more than 22 per cent on the National Stock Exchange.

The recent announcement of tariff hike by Reliance and other telecom giants like Bharti Airtel, and Vodafone Idea (Vi) led to a sharp increase in subscription plans.

Bharti Airtel CEO Gopal Bharti stated that India needs a "tariff repair" as the prices are still lower as compared to other nations. "Our pricing and tariffs are at an absurdly low level relative to any other part of the world. So, tariff repair is needed for return ratios to improve, it doesn’t matter which technology it comes from," he said.

Reliance Jio entered the telecom sector in 2016 and from being the youngest to now a leader in the telecom sector, the company has come a long way in short span. If IPO listing happens next year it will be a huge jump for the youngest telecom giant.