HomeMarket NewsReliance Jio IPO may strengthen balance sheet, create new growth avenues: Analysts
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.
Reliance Industries’ planned listing of Jio Platforms is being seen as a major trigger for the conglomerate, with analysts expecting the IPO to strengthen the balance sheet and create fresh avenues for growth through digital services and artificial intelligence.
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 him, 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 noted that Jio’s positioning goes beyond conventional telecom services. Its investments in AI, digital platforms and content ecosystems give it a broader platform strategy compared with pure-play telecom operators.
Nearly a decade after its commercial launch in September 2016, Reliance Jio is preparing to enter the 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. While the company was valued at around $58-65 billion during those fundraising rounds, market expectations now peg its valuation at $110-120 billion.
From being a telecom disruptor, Jio has evolved into India’s largest digital platform with more than 525 million subscribers. Its upcoming IPO, the first from the Reliance Group in nearly two decades, is expected to be a pure fresh issue with no offer-for-sale component.
Existing shareholders, including Reliance Industries, which owns a 66.43% stake, and strategic investors Meta (9.99%) and Google (7.73%), will not dilute their holdings.
A key objective of the issue is to strengthen the balance sheet, with over ₹27,000 crore of the proceeds earmarked for debt reduction.
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