Jio could list by 2025 says Jefferies, who expects 7-15% upside for the stock

Mumbai: Reliance Industries share price has risen 22% year to date. The news flow and analysts expectations around Reliance’s telecom arm Jio , have also been a reason for the upside in Reliance share price.

Jefferies India Ltd in its recent report says that Jio could list at $112bn valuation. Assuming Jio business is spun off from Reliance Industries, Jefferies fair value for Reliance share prices would be Rs3,580, implying around 15% upside. If Reliance Industries considers to go for listing of Jio through IPO route, fair value as per Jefferies would fall to Rs3,365 in the base case (factoring 20% holding company discount).

Jefferies says that Jio’s focus on monetization and subscriber market share gains is evident from the fact that Jio led the way in the recent tariff hikes unlike in the past but kept featurephone tariffs unchanged. These moves as per Jefferies create a case for a possible public listing in Calendar year 2025. Reliance Industries could look to IPO or spin off Jio, as it did with Jio Financial Services (JFS).