Reliance Jio's potential IPO to see positive impact from SEBI proposals, Citi says
Published on 19/08/2025 10:43 AM
Reliance Jio's potential IPO to see positive impact from SEBI proposals, Citi saysCiti is valuing Jio Platforms at an enterprise value of $135 billion and an equity valuation of close to $120 billion as part of its SOTP valuation for parent Reliance Industries.By Hormaz Fatakia August 19, 2025, 10:43:34 AM IST (Updated)2 Min ReadThe Securities and Exchange Board of India (SEBI) came out with multiple proposals with regards to the minimum offer size requirements for large IPOs on Monday, August 18.
One of those proposals included that issuers with a post-IPO market capitalisation of over ₹5 lakh crore, could reduce their minimum offer size for public shareholders to 2.5% from the current threshold of 5%.
Brokerage firm Citi wrote in its note that such a move could have meaningful positive implications for Jio's potential IPO.
Citi is valuing Jio Platforms at an enterprise value of $135 billion and an equity valuation of close to $120 billion as part of its SOTP valuation for parent Reliance Industries.
At the current 5% threshold, there could be a potential equity supply of over $6 billion in Jio's potential IPO, which could be fairly large for the Indian market to absorb, according to Citi, more so because 35% of the issue will be reserved for retail shareholders, a proposal that SEBI has maintained.
However, a 2.5% threshold will reduce the equity supply to $3 billion and will not only reduce the supply overhang during the IPO, but also reduce the holding company discount for Reliance Industries, Citi wrote.
Citi has a "buy" recommendation on Reliance Industries with a price target of ₹1,690.
Shares of Reliance Industries are trading 2.3% higher on Tuesday at ₹1,412. The stock has gained 16% so far in the last one month.
Disclaimer: Reliance Industries Ltd, which owns Jio, is the sole beneficiary of Independent Media Trust that controls Network18, the parent company of CNBCTV18.com.
Continue ReadingNote To ReadersDisclosure: Network18, the parent company of CNBCTV18.com, is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.First Published: Aug 19, 2025 10:42 AM ISTCheck out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!TagsIPOReliance Industries share priceReliance Industries sharesReliance Jioshare market today