Reliance Industries Limited's planned initial public offering of Jio Platforms is expected to raise ₹30,000 crore, with a potential valuation around ₹11 lakh crore, making it one of the largest IPOs in India. The listing is highly anticipated by primary market investors and is set to influence the valuations of other telecom sector players, according to a report by Motilal Oswal Financial Services (livemint.com).
The Jio IPO is shaping up as a mega event in the Indian market, with Dalal Street closely monitoring its impact on the telecom sector. Motilal Oswal noted that the IPO's completion, along with the expected closure of Vodafone Idea’s long-pending fund raise, could pave the way for a broad-based tariff hike. The brokerage projected a 15% increase in smartphone tariffs, amounting to roughly ₹50 on 28-day unlimited data packs starting December 2026 (livemint.com).
The valuation of Jio Platforms through this IPO is expected to have a significant bearing on the sector’s overall valuation and could trigger a re-rating of telecom stocks. Motilal Oswal emphasized that further multiple expansions depend on higher long-term average revenue per user (ARPU) growth, beyond their current assumption of about 5% compound annual growth rate from fiscal 2029 to 2036. Bharti Airtel remains a top pick in the sector amid these developments (livemint.com).
The Jio IPO is positioned to be a key near-term event for the telecom sector, with the potential to influence tariff structures and sector valuations. The listing and related fund raises are expected to conclude before December 2026, aligning with the anticipated tariff hike timeline, according to Motilal Oswal Financial Services (livemint.com).