Reliance gains as Jio Platforms IPO nears

Reliance Industries Limited (NSE: RELIANCE) rose 3.44% on October 15 after Jio Platforms announced its IPO price band. Jio Platforms has set the price band at ₹1,065 to ₹1,119 per share, valuing the business at up to about $108 billion. Key details • Jio Platforms’ IPO could raise about $3.2 billion. • The issue is scheduled to open on October 21 and close on October 23. • Reliance is expected to retain around 64.5% in Jio Platforms after the listing. • The IPO gives investors a separate market value for Reliance’s telecom and digital business. My view The biggest impact is valuation clarity. Jio has so far been bundled inside Reliance along with retail, energy and other businesses. A separate listing creates a visible market benchmark for one of Reliance’s largest growth engines. That could make the parent company easier to value on a sum-of-the-parts basis. But the key question will be whether Jio’s listed valuation can sustain a premium versus peers like Bharti Airtel once trading begins. What I’m watching next I will watch IPO subscription, final pricing, listing performance and whether Reliance sees a sustained valuation re-rating after Jio starts trading. Stance: Positive on value unlocking, but the post-listing valuation of Jio will be the main trigger. Disclosure: I do not have any holding or position in the stock mentioned above.