Archive · 1 Aug 2025
Reliance Jio IPO: Emkay Recommends a 'Buy' Rating for RIL
A brokerage firm, Emkay, thinks Reliance Industries (RIL) is a good investment.
They especially like the upcoming stock market launch (IPO) of RIL's phone company, Jio.
This IPO could be huge, potentially raising a lot of money and valuing Jio at a massive $120 billion.
RIL might only offer a small part of Jio to the public, which could be a bit unusual.
Emkay also points out that RIL has other successful businesses like oil and retail.
They advise investors to watch out for potential risks such as market changes.
Emkay recommends a "Buy" rating for Reliance Industries (RIL) with a target price of Rs 1,600.
RIL plans to list around 5% stake in Reliance Jio Infocomm (RJio), potentially raising $6 billion.
The RJio IPO could value the company at $120 billion, potentially India's largest public issue.
RIL is reportedly in talks with SEBI for a smaller public float than the typical 25%.
Emkay sees steady progress in RIL's O2C, New Energy, and Retail segments.
- Who
- Reliance Industries (RIL) and its telecom arm, Reliance Jio Infocomm (RJio).
- What
- Reliance Industries plans for a Reliance Jio Infocomm (RJio) IPO.
- When
- Information is current based on the report from the brokerage firm.
- Where
- India, as this is where Reliance Industries operates.
- Why
- To raise capital and potentially increase the value of RJio.
Liquidity Concerns
Valuation and Market Depth
Public Float Size
Liquidity Concerns
Smaller float could limit exit opportunities for early investors.
Valuation and Market Depth
Larger float could dilute value.
- Brokerage Recommendation
- "Buy" rating by Emkay
- Target Price
- Rs 1,600
- RJio IPO Stake
- Around 5%
- Potential IPO Raise
- $6 billion (approx. Rs 52,200 crore)
- RJio Valuation
- $120 billion
- EV/EBITDA (FY26)
- 16.4x (RJio)
- EV/EBITDA (FY27)
- 13.7x (RJio)