Business · Markets · 2 hrs ago
Proposed Jio IPO could lift telecom valuations, analysts say
Jio Platforms, the digital-services business of Reliance Industries, is proposing an IPO in India.
The company is reportedly valued at ₹11 trillion, which analysts say could give investors a clearer benchmark for valuing other telecom businesses.
They expect a possible 15% increase in smartphone tariffs from December 2026 to support sector earnings, alongside improving pricing discipline and a possible fundraise by Vodafone Idea.
Bharti Airtel could benefit from higher tariffs, growing demand for premium plans and strong cash flow.
Reliance Industries could gain if the IPO makes the value of its 66.4% stake in Jio Platforms clearer to investors.
The proposed listing may also draw some investor money away from Bharti Airtel, though a limited number of shares available at first could reduce that effect.
The IPO and tariff increase remain proposed or expected developments, and the analysts say they could support a re-rating of telecom shares.
Motilal Oswal says a proposed Jio Platforms IPO could prompt a valuation re-rating in India’s telecom sector.
The brokerage cites a reported Jio Platforms valuation of ₹11 trillion, broadly in line with its estimated fair value.
It says a potential 15 per cent smartphone tariff increase in December 2026 could improve earnings visibility across the sector.
Bharti Airtel and Reliance Industries could benefit from the proposed listing as a valuation benchmark and potential value-unlocking catalyst.
The IPO could also redirect some investor allocations, though Jio Platforms’ limited initial free float may limit the impact on Bharti Airtel.
- Who
- Motilal Oswal Wealth Management Research Desk assessed the potential effects on Jio Platforms, Bharti Airtel and Reliance Industries.
- What
- The brokerage says a proposed Jio Platforms IPO could lift telecom valuations and provide a sector benchmark.
- When
- The IPO is proposed; a potential 15 per cent smartphone tariff hike is cited for December 2026.
- Where
- India’s telecom sector.
- Why
- The proposed listing could unlock value and establish a clearer valuation benchmark; a possible tariff hike could strengthen earnings visibility.
This story does not have two clearly opposing sides.
This story does not have a timeline yet.
- Reported Jio Platforms valuation
- ₹11 trillion
- Jio Platforms stake held by Reliance Industries
- 66.4 per cent
- Potential smartphone tariff hike
- 15 per cent in December 2026
- Jio Platforms valuation multiple
- Around 12x FY28E EV/Ebitda
- Initial free float
- Described as limited
Sources
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