Jio Platforms IPO: The listing of Jio Platforms is likely introduce transformative structural shifts for both the broader Indian telecom sector and its parent company, Reliance Industries (RIL).
Amid growing anticipation around Jio Platforms’ initial public offering (IPO), a fresh update on the issue has emerged. The Mukesh Ambani-led telecom company is likely to price its shares in the range of ₹1,065 to ₹1,119 apiece, Bloomberg reported, citing sources. However, Jio Platforms has not yet officially disclosed key details of the IPO, including the price band, valuation and timeline.
Telecom stocks likely to face valuation pressure?
Jio’s proposed valuation could reset the way investors assess Bharti Airtel, which has been a major beneficiary of improving average revenue per user (ARPU), tariff increases and industry consolidation.
Seema Srivastava, Senior Research Analyst at SMC Global Securities, said Jio’s standalone listing would establish a transparent valuation benchmark for the telecom sector and could trigger a re-rating of listed peers, including Airtel.
At a reported valuation of around ₹11 lakh crore, Jio Platforms would be valued slightly above Airtel’s market capitalisation of approximately ₹10.87 lakh crore. Garg noted that Jio’s reported valuation of around 37 times FY26 profit compares with about 63 times trailing earnings for Airtel.
Meanwhile, Gaurav Garg, Head of Research at Lemonn, said Jio’s listing could create a near-term overhang for the stock as investors compare the valuations of the two telecom giants.
Garg further explained that this valuation gap could influence institutional investors looking for direct exposure to Jio. Some investors may rebalance their portfolios ahead of the IPO, potentially creating short-term volatility in Airtel shares.
Tariff hike could be a bigger trigger
Beyond valuation, the Jio IPO could have a more lasting impact on the sector if it improves the prospects of another round of mobile tariff increases.
Srivastava expects structural tariff increases to become more likely once Jio’s listing is completed and Vodafone Idea concludes its fundraising plans. She pointed to expectations of a roughly 15% tariff hike by December 2026, which could materially improve revenue and profitability across the industry.
India has not had a mobile tariff hike since July 2024, and a listed Jio will face minority shareholders every quarter. That raises the odds of the 12–15% hike the street has been waiting for.
Garg believes Jio’s transition into a publicly listed company could strengthen this possibility. As a listed entity, Jio would face greater scrutiny from minority shareholders and the market over its financial performance, profitability and capital allocation.
“Jio’s listing turns India’s price-setter into a company that answers to shareholders every quarter, and that is the best case for the next tariff hike,” Garg said.
A tariff increase could benefit Airtel and Vodafone Idea by lifting revenue per user without requiring a proportionate increase in their subscriber bases.
“Vodafone Idea could see a particularly significant percentage improvement because of its weaker financial position, although higher tariffs alone would not resolve its debt burden, funding needs and network investment requirements,” said Srivasatava.
What does it means for shareholders?
Srivasatava further explained that because Jio’s initial free float is expected to be a tight 3%, massive immediate capital rotations out of established players remain unlikely.
For RIL shareholders, the IPO represents a major value-unlocking event. While RIL will transition back to being evaluated primarily on its retail, petrochemical, and new energy verticals, its retained 66.4% promoter stake in Jio will likely attract a holding company discount of 18% to 36%, though much of this is already priced into the stock, she said.
“Ultimately, the fresh equity raised will be channeled toward prepaying telecom debt, strengthening Jio’s balance sheet as it cements its leadership in India’s digital ecosystem,” she added.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
