Shares of Reliance Industries Ltd rose on Monday after the conglomerate’s annual general meeting (AGM) unveiled a series of growth initiatives, including the proposed listing of Jio Platforms, artificial intelligence investments, and new energy projects.
The stock rose more than 2% during the session, making it one of the top gainers on the Nifty 50.
By 2:40 pm IST, however, it had pared some gains and was trading 1.6% higher at Rs 1,330.50.
The filing of Jio Platforms’ draft red herring prospectus (DRHP) has brought Reliance one step closer to unlocking value from what analysts consider the group’s most important growth engine.
Nearly a decade after its commercial launch in September 2016, Reliance Jio is preparing to enter public markets, marking a major milestone in one of India’s most significant corporate transformations.
Over the years, Jio Platforms attracted more than $20 billion from global investors, including Meta, Google, Silver Lake, KKR, and General Atlantic.
Valuations during those fundraising rounds ranged between $58 billion and $65 billion, while market expectations now peg its value at roughly $110 billion to $120 billion.
From a telecom disruptor, Jio has evolved into India’s largest digital platform with more than 525 million subscribers.
IPO proceeds expected to strengthen balance sheet
The proposed initial public offering will comprise a fresh issue of up to 27 crore shares, resulting in an equity dilution of around 3%.
The proceeds are expected to be used primarily to reduce debt at Jio Platforms.
Brokerages estimate Jio’s valuation in the range of $115 billion to $128 billion, broadly placing it on par with Bharti Airtel.
Nomura noted that Airtel’s valuation includes stakes in Airtel Africa and Indus Towers.
“Adjusted for these investments, the implied equity valuation for Bharti Airtel’s India telecom business is Rs 10.6 lakh crore or $113 billion,” the brokerage said, suggesting that Jio could potentially seek a modest premium to its closest rival.
Nomura retained its buy rating on Reliance Industries with a target price of Rs 1,640 per share and estimated Jio’s implied valuation at $117 billion to $127 billion.
Analysts see digital business driving earnings growth
Brokerages expect Jio to remain the biggest contributor to Reliance’s future earnings expansion.
Motilal Oswal Financial Services reiterated a buy rating on Reliance Industries with a target price of Rs 1,655 after the AGM.
The brokerage expects Reliance Jio to remain the company’s largest growth driver, with digital businesses contributing 80% of incremental EBITDA and posting an 18% EBITDA compound annual growth rate between FY26 and FY28.
The expected growth is likely to be supported by a planned 15% wireless tariff hike in the second quarter, market share gains, and continued expansion of home broadband and enterprise services.
Systematix Institutional Research said Reliance’s growth profile is broadening beyond its traditional businesses.
“The Jio IPO process has formally commenced, while Reliance Intelligence (AI) is emerging as a fourth growth pillar alongside Telecom, Retail, and Energy. The New Energy business is set to enter commercialization in FY27 with initial solar revenues and battery commissioning, and RCPL is targeting ₹1 trillion revenues by FY30 as it scales into a leading FMCG platform,” analysts at Systematix Institutional Research said.
AI and digital ecosystems offer long-term opportunities
Piyush Pandey, Senior Vice President at Centrum India, values Jio at around $130 billion and expects the IPO to be priced at a modest discount.
He believes investors should maintain exposure to both Bharti Airtel and Jio once the latter gets listed.
According to Pandey, the next phase of growth for Reliance Industries will depend on how effectively it monetises its large customer base and rising data consumption.
Apart from telecom services, businesses such as JioSaavn, JioTV, and other digital offerings could provide additional growth opportunities over time.
Nitin Soni, Senior Director and Head of Natural Resources for South and South East Asia at Fitch Ratings, said the proposed issue is a positive development as the proceeds will be used to pare debt and improve financial flexibility.
“We do expect ARPU to improve 10 to 15% each year, and at the same time, data consumption per user per month will also increase,” Soni said.
Soni added that Jio’s positioning extends beyond conventional telecom services, with investments in AI, digital platforms, and content ecosystems giving it a broader platform strategy than pure-play telecom operators.
Nuvama, however, cautioned that even if Jio commands a premium valuation in public markets, gains for Reliance shareholders could be tempered by the holding company discount that investors typically apply to diversified conglomerates with complex ownership structures.
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