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Jio IPO Could Spark Major Telecom Sector Rerating Says Centrum
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CNBC TV18•07-10-2026, 15:03
Jio IPO Could Spark Major Telecom Sector Rerating Says Centrum
- •Centrum India Senior Vice President Piyush Pandey believes the upcoming Jio Platforms IPO could trigger a market rerating for listed telecom stocks.
- •Centrum values Jio Platforms at approximately ₹12 lakh crore, with the IPO potentially offering a modest discount to that valuation.
- •Bharti Airtel's recent postpaid tariff hike is viewed as a precursor to broader price increases across the telecom industry.
- •Prepaid tariff hikes are expected within the next three to five months and will likely drive significant growth in average revenue per user.
- •Vodafone Idea could benefit substantially if it implements similar tariff increases due to its postpaid revenue mix.
Key Questions Answered
Centrum values Jio Platforms at close to ₹12 lakh crore, with the public issue expected to be priced at a modest discount to that valuation.
Airtel's postpaid tariff hike could serve as the first step towards broader price increases across the telecom sector, with prepaid tariff hikes of around 10 to 12 percent expected over the next three to five months.
The Jio IPO is structured as a fresh issue of shares with no offer-for-sale component, and its proceeds are expected to help reduce debt at Jio Platforms.
