Stories
Jio IPO to unlock 20% upside for Reliance Industries, says Gurmeet Chadha
- •The upcoming Jio Platforms IPO is expected to drive Reliance Industries fair value higher by 15% to 20% and strengthen its balance sheet through debt reduction.
- •Gurmeet Chadha of Complete Circle views the IPO as a milestone event, noting that current market capitalization reflects a 35% to 40% discount to its intrinsic value.
- •Proceeds from the public issue of around ₹30,000 crore will primarily target cutting Reliance Industries consolidated debt by approximately ₹27,000 crore.
- •Fitch Ratings highlights that the IPO proceeds will improve the net debt-to-EBITDA ratio from an average of 0.7x to 0.55x in FY27.
- •Jio leads the telecom sector with over 53 crore users and higher broadband penetration, while maintaining room for future tariff levers compared to Bharti Airtel.
Key Questions Answered
The initial public offering for Jio Platforms is scheduled to open for subscription on October 21 and close on October 23, 2026, following anchor bidding on October 19, 2026. The proposed public issue includes a fresh issue of up to 27 crore equity shares, with proceeds of approximately ₹30,000 crore primarily targeting debt reduction for the parent conglomerate.
The fresh issue proceeds from the IPO will cut Reliance Industries' consolidated debt by about ₹27,000 crore. Fitch Ratings projects that RIL's net debt will drop to roughly ₹1,00,000 crore after the issue, improving the net debt-to-EBITDA ratio from 0.7x to 0.55x in FY27.
The public issue includes a reservation of equity shares worth up to ₹500 crore specifically for eligible employees. Additionally, up to ₹2,500 crore is reserved for eligible Reliance Industries shareholders who hold shares as of the RHP filing date.
