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Reliance shares imply a discount to Jio Platforms value ahead of IPO

Analysts said the implied discount on Reliance Industries' two-thirds stake in Jio Platforms could reach 36% based on Reliance's share price, versus about 25% they view as more sustainable.

Reported · Written up by our desk · Emerging Markets

Reliance Industries is preparing for a Jio Platforms IPO as soon as this month, with the unit seeking an overall valuation of about ₹11 lakh crore, according to LiveMint Markets. That would put the parent company's two-thirds stake at roughly ₹7.3 lakh crore, or about 45% of Reliance's current market value.

LiveMint Markets cited analysts saying Reliance's share price implies a substantial discount for investors taking indirect exposure to Jio before the listing. Co-founder Nimish Maheshwari of research firm Beat The Street said the parent stock price reflects about a 36% discount on its Jio stake, while he estimated about 25% as sustainable.

The report also explained that discounts for parent holdings are common because shareholders only receive indirect exposure to subsidiaries. It noted that discounts can rise toward 50%, but said there is no strong technical or fundamental justification for such a steep gap in this case, quoting Change Global Investment managing director Thea Jamison.

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