Jio Platforms Listing to Boost Valuation, Tariff Hike on Cards: Analysts

Reliance Industries' plan to list Jio Platforms may lead to a 15% industry tariff hike, boosting the mobile operator's valuation beyond $133 billion. Analysts expect the tariff hike to happen later this year, with Jio leading the industry in raising rates. Jio's listing could also lead to a rerating of Bharti Airtel's stock. The tariff hike is positive for both Jio and Bharti Airtel, as they expand beyond pure-play telecom through investments in data centers, cloud, and home broadband.

Reliance Industries' plan to list Jio Platforms by the first half of 2026 has sparked significant interest and debate among analysts. The potential IPO could lead to a 15% industry tariff hike, significantly boosting the mobile operator's valuation. Analysts expect this tariff hike to occur later this year, with Jio leading the industry in raising rates [1].

The proposed IPO would dwarf India's largest IPO to date, Hyundai Motor India's Rs 27,870 crore offering in 2024. Even a modest 5% stake sale in Jio could raise Rs 58,000–67,500 crore, more than double Hyundai’s issue size [1]. Jio's subscriber momentum is robust, with its 5G user base crossing 220 million, compared to 210 million at the end of the June quarter, while overall subscribers topped 500 million [1].

Analysts note that the tariff hike is likely to be positive for both Jio and Bharti Airtel. The move is part of Jio's strategy to expand beyond pure-play telecom through investments in data centers, cloud, and home broadband. The listing could also lead to a rerating of Bharti Airtel's stock, as investors reassess the sector's prospects [1].

However, the IPO is not without risks. Execution challenges and potential holding company discounts are key concerns. Antique Stock Broking flagged that "delivery against aggressive timelines (especially in New Energy) is the swing factor," while Nuvama analysts cautioned that RIL shareholders may not benefit hugely due to holding company valuation discount [1].

The proposed Jio listing would set the stage for what could be the country’s biggest-ever IPO. As Mukesh Ambani positions Jio to mirror the scale of global telecom peers, investors will be watching closely for tariff moves, capital allocation decisions, and whether the listing structure can truly unlock value, or leave RIL shares trading at a discount [1].

References:
[1] https://m.economictimes.com/markets/ipos/fpos/reliance-jio-ipo-set-for-2026-analysts-see-tariff-hike-and-execution-risks-ahead/articleshow/123626186.cms