Reliance Jio IPO: CLSA says listing will be ‘mega occasion’; pegs $128 bn valuation as growth accelerates

Reliance Jio’s upcoming inventory market debut may reshape India’s telecom sector, with monetary providers agency CLSA calling it a “mega event” that will additionally set off a rerating of Bharti Airtel. The brokerage underlined that Jio, which instructions a subscriber base of over 500 million throughout 4G and 5G networks, holds 42 per cent market share and continues to broaden aggressively.Reliance Industries Chairman and Managing Director Mukesh Ambani had introduced on August 29 that Jio will file for its long-anticipated preliminary public providing (IPO), with plans to record by the primary half of 2026, topic to approvals. Against this backdrop, CLSA launched an in depth report monitoring Jio’s progress over the previous decade and its potential forward.According to CLSA, Jio has achieved $13 billion in income and $7 billion in Ebitda, and is valued at $128 billion EV on 13x EV/Ebitda in Reliance’s SOTP. “We expect Jio’s rising ARPU will drive 50-60 per cent growth in revenue and Ebitda to $19-11 billion by FY28CL,” it stated, noting that the corporate has employed capital value $51 billion up to now.The report added “The Jio IPO will be a mega event and a rerating trigger for Bharti, in our view. Jio and Bharti are two of the most direct ways to invest in India’s digitalisation and offer a highly favourable risk-reward.”Jio’s common income per person (ARPU) presently stands at Rs 209, up 63 per cent since tariff hikes started, although nonetheless 17 per cent decrease than Bharti Airtel. The firm instructions an all-India income market share of 42.3 per cent, adopted by Bharti at 39.2 per cent, reflecting its robust community execution.In the residential broadband enterprise too, Jio leads with 20 million subscribers throughout Jio Fiber and Jio AirFibre (5G FWA), aiming to scale to 100 million houses, in contrast with Bharti’s 11 million. Jio’s 4G/5G base continues to develop quickly, with 5G now accounting for 42 per cent of its whole subscribers.Jio has additionally led tariff hikes within the sector. In July 2024, it elevated pay as you go tariffs by 13-25 per cent and raised its entry post-paid plan by 17 per cent to Rs 349. The threshold for accessing 5G providers was raised from 1.5GB/day to 2GB/day on the identical Rs 349, amounting to a 46 per cent improve.On Reliance Industries general, CLSA famous “Flow-through of recent tariff hike for Jio, recovery in retail’s growth momentum and Jio Airfiber led positive momentum in broadband subscribers should drive improvements. Start of new energy projects and possible IPO of Jio are other triggers over next 12-15 months.”