Reliance Industries Sees 18% Upswing on Jio Platforms IPO

Reliance Industries’ market price is trading at a 35‑40% discount to the conservative fair value of $260‑$280 billion, according to Gurmeet Chadha of Complete Circle. The valuation gap reflects the current market capitalization versus the sum‑of‑parts estimate that values the 66% stake in Jio, 83% in retail, and the oil‑to‑chemicals arm at $60‑$70 billion.

The Jio Platforms IPO is expected to raise ₹30,000 crore, which the company plans to allocate largely to debt reduction. This move will trim consolidated debt by roughly ₹27,000 crore, lowering the net debt figure from ₹130,000 crore to about ₹100,000 crore by FY27.

Fitch Ratings upgraded Reliance’s local currency rating to A‑ from BBB+ on the basis that the IPO will reduce capital‑expenditure intensity across its telecom, retail and oil‑gas businesses. The upgrade signals improved liquidity expectations and a tighter debt‑to‑EBITDA profile.

After the IPO, Reliance’s debt‑to‑EBITDA ratio is projected to shrink from an average of 0.7x to 0.55x in FY27, a 0.15x improvement that places the conglomerate in a stronger credit position. Jio Platforms’ standalone ratio is already below 1x and will decline further.

Looking ahead, the IPO’s launch window will test investor appetite for a company that is pivoting from pure telecom to a broader digital ecosystem, including AI‑driven enterprise services and satellite internet. Market observers will gauge whether the proceeds can not only clean up the balance sheet but also fuel the expansion of Jio’s digital platform and reinforce its competitive edge against peers like Bharti Airtel.

With the IPO’s anticipated debut, traders will monitor the bid‑to‑offer ratio for signs of demand. A robust first‑day performance could validate the 18% upside forecast and further support Reliance’s strategic debt‑reduction plan.