Jio Platforms share price: After the bumper listing of Reliance’s Jio Platforms in the Indian secondary market, investors and market observers are busy calculating how the Jio Platforms share price movement will impact Reliance Industries Ltd (RIL) shares. Their guess is right because the Jio Platforms patent company, Reliance Industries, holds around a two-thirds stake in the newly listed Reliance Group company.
Reliance Industries connection with Jio Platforms
Connecting the company’s relations and their impact post-listing, Arun Kejriwal, Founder of Kejriwal Research and Investment Services, said, “Jio Platforms shares have been listed on the NSE and BSE after the business demerger from the parent organisation, Reliance Industries Ltd. Despite the business demerger, RIL holds around two-thirds of the stake in Jio Platforms. After listing at ₹1,358 per share, Jio Platforms’ market cap comes to around ₹12.50 lakh crore. RIL owns around 65% sake in Reliance Jio after Jio Platforms’ share price listing. So, in terms of market capitalisation, around ₹8.125 lakh crore [(65/100) x ₹12.50 lakh crore] market cap in Jio Platforms belongs to RIL.”
Avinash Gorakshkar, Founder of Avinash Mentor Research, said, “A patron company trades at around 15% to 20% discout against its shareholding in the listed entity. So, one should not take the exact Jio Platforms market cap, which comes in sync with the shareholding of the parent company.”
So, the exact Jio Platforms market cap that will impact Reliance Industries shares would come around ₹6.50 lakh crore [(0.80/100) x ₹8.125 lakh crore].
Jio Platforms’ market cap and Reliance shares’ connection?
Gorakshkar said that Reliance share price today is around ₹1,175 per share on the NSE, with a market cap of around ₹16 lakh crore. Equating ₹6.50 lakh crore market cap of Jio Platforms belonging to RIL and their respective shares, the additional ₹6.50 lakh crore market cap of Jio Platforms would come around ₹477 [(1175/16) x ₹6.50].
“So, due to the strong debut of Jio Platforms share price on Dalal Street, one can expect the Reliance share price to appreciate by around ₹477 per share to around ₹1,650 in the medium term, provided Jio Platforms continue to sustain at higher levels,” Avinash Gorakshkar said.
What ₹100 movement in Jio Platforms shares mean for RIL shares?
Decoding the impact of the ₹100 per share movement in Jio Platforms shares on Reliance Industries shares, Avinash Gorakshkar said, “ ₹477 addition in the RIL share price is due to the Jio Platforms share listing price of ₹1358. So, ₹100 movement in Jio Platforms shares would mean around ₹35 [( ₹477 / ₹1358) x 100] per share movement in Reliance shares in the same direction.”
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