Reliance Jio IPO Expected in 2025 at $112 Billion Valuation, Jefferies Suggests Spin-Off Favor

Reliance Jio might go public in 2025, possibly at a valuation of $112 billion, as per Jefferies.
  
Investors, both from India and abroad, seem to prefer Jio being spun off rather than directly listed.

Recent moves by Jio, like raising tariffs while keeping feature phone rates steady, strengthen the case for a potential listing.

Jefferies suggests two options for listing: IPO or spin-off, each having its pros and cons.

If Jio opts for an IPO, it could list 10% of its shares, with a significant portion reserved for retail investors.

A spin-off would avoid a holding company discount and might unlock better value for Reliance Industries Ltd. (RIL) shareholders.

According to Jefferies, a spin-off could lead to a 15% upside in RIL’s share value, compared to 7% if Jio goes the IPO route.

The decision between an IPO and spin-off will affect the ownership stake of RIL in Jio post-listing.

Jefferies forecasts that if Jio is spun off, RIL’s fair value could be Rs 3,580 per share, while an IPO might reduce it to Rs 3,365 per share.