Stories
Jio Platforms IPO Could Spark Share Re-Rating For RIL And Bharti Airtel: Motilal Oswal
- •Jio Platforms could seek a valuation of around Rs 11 lakh crore in its upcoming initial public offering, acting as a re-rating catalyst for Reliance Industries and Bharti Airtel.
- •Motilal Oswal notes that concerns over the IPO diverting capital away from Bharti Airtel may be overstated, as Airtel boasts strong cash flows and return on capital.
- •A long-awaited 15 per cent smartphone tariff hike is anticipated around December 2026, supported by recent industry moves like the discontinuation of low-end data packs.
- •For Reliance Industries, the listing could unlock hidden value by providing a clearer valuation for its 66.4 per cent stake in Jio Platforms.
- •Reliance Jio's wireless subscriber base is projected to grow from 497 million in FY26 to 541 million in FY28, with steady increases in revenue and EBITDA margins.
Key Questions Answered
Jio Platforms could seek a valuation of around Rs 11 lakh crore ($114 billion) in its impending initial public offering, according to brokerage Motilal Oswal Financial Services. Other brokerages estimate its valuation in the range of $115 to $128 billion, with Centrum valuing the company close to Rs 12 lakh crore based on FY28 projected earnings.
The initial public offering comprises a fresh issue of up to 27 crore shares with an equity dilution of about 3 percent and no offer-for-sale component. A substantial portion of the net proceeds, up to Rs 27,500 crore, is earmarked to repay or prepay borrowings of its telecom operating company, Reliance Jio Infocomm.
Motilal Oswal expects a long-awaited telecom tariff increase of about 15 per cent in December 2026, which is anticipated to support earnings growth across the sector after the Jio Platforms IPO and Vodafone Idea's proposed fundraise. Centrum also notes that current market valuations already factor in a tariff hike of close to 12% around November-December.
