Jio Platforms IPO Price Band

Jio Platforms has fixed its IPO price band at Rs 1,065-1,119 per share, potentially raising Rs 30,213 crore.

IPO Valuation Context

This issue could become India’s largest-ever IPO, surpassing Hyundai Motor India’s Rs 27,858.75 crore issue in 2024.

Akash Ambani on Debt Reduction

Akash Ambani stated all IPO proceeds will reduce debt, aiming for a net debt-free company.

“All our IPO proceeds go towards reducing our debt”

Akash Ambani on 6G Timeline

Akash Ambani mentioned Jio Platforms is in the pre-standard phase of 6G, with commercial rollout expected in early 2030s.

Isha Ambani on Pricing Strategy

Isha Ambani emphasized pricing to attract investors for long-term value creation with Jio’s growth.

“For us, it is most important to be able to price this attractively so that shareholders who come in can create long-term value along with the growth of Jio Platforms”

Uday Kotak on Valuation

Uday Kotak noted Jio Platforms is valued at 34x FY25-FY26 earnings, compared to 41x for close peers.

“The RIL group, after Jio’s listing, will be India’s largest conglomerate, based on listed market cap.”

SBI Securities Assessment

SBI Securities reports Jio Platforms has 15.8% revenue CAGR, 16.2% EBITDA CAGR, and 18.5% PAT CAGR.

“The company delivered Revenue/EBITDA/PAT CAGR of 15.8%/16.2%/18.5%, respectively, during FY24-FY26 period”

SBI Securities on Growth Drivers

SBI Securities highlights 5G, tariff hikes, broadband expansion, and enterprise cloud services as key growth drivers.

“SBI Securities pointed to tariff rationalisation, the shift from 2G to 4G and 5G, higher data usage, home broadband expansion and growing demand for enterprise cloud services.”

SBI Securities Valuation

SBI Securities values Jio Platforms at 34.4x FY26 earnings and Rs 20,117 per subscriber.

“At the upper price band, SBI Securities values the issue at a post-issue price-to-earnings (P/E) multiple of 34.4 times FY25-26 earnings and an enterprise value per subscriber of Rs 20,117”

Centrum on Debt Repayment

Centrum reports Rs 27,500 crore of IPO proceeds will repay debt, reducing leverage and financing costs.

“Of the proceeds, Rs 27,500 crore is earmarked for debt repayment or prepayment”

Centrum on Tariff Hike

Centrum expects a 12% tariff hike in the next 3-4 months, boosting average revenue per user.

“Centrum expects average revenue per user (ARPU) to improve through tariff hikes, a better subscriber mix and increased adoption of premium services.”

Centrum Valuation

Centrum values Jio Platforms at Rs 11.5 trillion using 12x FY27-28 EBITDA multiple.

“On valuation, Centrum assigns Jio Platforms an equity value of Rs 11.5 trillion, based on an enterprise value-to-earnings before interest, taxes, depreciation and amortisation (EV/EBITDA) multiple of 12 times estimated FY27-28 EBITDA”