RIL’s call to list Jio Platforms could unlock up to 35% value

Mumbai: Reliance Industries gained as much as 3% on Monday as investors turned optimistic about value unlocking through the upcoming Jio Platforms IPO, artificial intelligence initiatives and the company’s new energy ventures. Brokerages see upside potential of up to 35% in the stock following the announcement of these plans at the Annual General Meeting on Friday. The stock ended 1.2% higher to close at ₹1,324.7

Analysts said the biggest trigger for the stock was the proposed Jio IPO, which could give investors greater visibility into the telecom company’s growth and profitability metrics. “The primary reason for the buying interest in Reliance Industries was the value unlocking from the Jio IPO that could provide investors clear insight into Jio’s ARPU,” said Vyom Chheda, Research Analyst, StoxBox.

Jio Platforms, the telecom arm of Reliance Industries, on Friday filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India for an initial public offering. Bankers indicated the IPO size is likely to be around $4 billion (over ₹37,000 crore), valuing the telecom operator at around ₹13 lakh crore. Reliance’s market cap is ₹17.95 lakh crore. “The value unlocking of the telecom business into a large cap from a mega cap is positive,” said Gaurav Sharma, head of research, Globe Capital.

Nomura has a ‘Buy’ rating on the stock and a target price of ₹1,640, implying an upside potential of around 24% from Monday’s close.

“Post the potential Jio IPO, new catalysts to look forward to may come from ramp-up of new energy business and revenue contribution starting FY27 growth of the AI business with 120MW by FY26-end; and potential listing of the Retail business,” said Nomura analysts.

At the AGM, chairman Mukesh Ambani detailed Reliance’s execution roadmap for its AI business and outlined plans for scaling up the company’s new energy ventures “The company indicated a long runway for growth in retail and consumer business and announced investments in an AI plant in Jamnagar,” said StoxBox’s Chheda. “The optimism in Reliance Industries is expected to continue, and investors should subscribe to the Jio IPO.”

Motilal Oswal Financial Services expects RJio to remain Reliance’s biggest growth driver, with digital services likely to contribute about 80% of the company’s incremental Earnings Before Interest, Tax, Depreciation and Amortisation (Ebitda) over FY26-28.