How Reliance Jio IPO is acting as shot in the arm for RIL shares — Will Mukesh Ambani company stock fly more? Buy now?

Reliance Industries share | Jio Platforms IPO: Shares of Reliance Industries Ltd (RIL) have been on an uptrend ever since the Jio Platforms IPO RHP was filed. After hitting the 52-week low of ₹1,152.20 per share ahead of the Jio Platforms IPO subscription opening, strong buying triggers are fueling RIL shares for the last few sessions. As the Jio Platforms IPO subscription opens today, Reliance share price opened with an upside gap at ₹1,212 and touched an intraday high of ₹1,234.30 per share within a few minutes of the Opening Bell, clocking an intraday gain of 1.75%.

According to stock market experts, this rally in Mukesh Ambani's company's shares can be attributed to the opening of Jio Platforms' IPO subscription. They said that RIL holds around two-thirds of Jio Platforms' stake, and a rise in Reliance Jio Platforms' market cap or valuation would translate into a two-thirds benefit for Reliance Industries and its shares. They said that the market is expecting around ₹350 to ₹500 per share value addition by Jio Platforms' share listing in the RIL shares. However, this may not happen in the short term, but they advised a ‘buy-on-dips’ strategy in Reliance shares as it may touch up to ₹1,700 per share by the end of FY27.

Whether Jio Platforms IPO is acting as a shot in the arm of Reliance Industries shares, Avinash Gorakshkar, Founder of Avinash Mentor Research, said, “The market is expecting the benefit of value unlocking for RIL, as it holds around one-third stake in Reliance Jio Platforms. So, this rally in the RIL shares can be attributed to the Jio Platforms IPO subscription opening.”

On how one can connect Jio Platforms IPO with Reliance Industries' shares. Avinnash Gorakshkar said that even after value unlock from RIL, the balance sheets of these two companies would be connected due to RIL's strong two-thirds shareholding. Good financial performance would continue to be reflected in RIL's balance sheet.

Expecting this value unlock rally to continue further, Avinash Gorakshkar said, “The market is estimating around ₹350 to ₹500 per share rise in RIL shares due to the value unlock. However, much will depend upon the kind of listing Jio Platforms IPO receives.”

Divulging the Jio Platforms IPO listing price, Avinash Gorakshkar said, “The market is expecting Jio Platforms IPO listing price in the range of ₹1350 to ₹1400, depending upon the market mood. This premium is expected to be added to RIL shares. The Jio Platforms IPO price band is ₹1,065 to ₹1,119. So, this ₹1350 to ₹1400 Jio Platforms IPO listing price means ₹250 to ₹300 per share addition in Reliance shares in the short-term-medium term. However, by the end of this fiscal, RIL share price is expected to end between ₹1,550 and ₹1,700, depending upon the kind of market mood that remains in the last quarter of the current fiscal.”

As the grey market premium (GMP) is one of the major indicators of the IPO listing price, it would be important to see what Jio Platforms' GMP reflects today.

According to market observers, Jio Platforms' IPO GMP today is ₹280, ₹20 higher than yesterday's ₹260. So, the grey market is also signalling a Jio Platforms IPO listing price of around ₹1,399 ( ₹1,119 + ₹280), around 25% higher than the upper price band of the Jio Platforms IPO.

Decoding the technical chart of Reliance shares, Mahesh M Ojha, VP — Research and Business Development at KC Securities, said, “Reliance Industries shares have a strong base formation at the ₹1,200 to ₹1,195 band. The stock has given a breakout above ₹1,200 and it is now heading towards the short-term target of ₹1,265. Existing shareholders and fresh buyers can initiate coverage with a strict stop-loss at ₹1,145 for the targets of ₹1,265, ₹1,290 and ₹1,350 in the short-term horizon.”

Disclaimer: This story is for educational and informational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified financial experts before making any investment decisions.

Asit Manohar has nearly two decades of experience in the mainstream media. In this period, he has served esteemed media organisations like NDTV Profit, The Economic Times, and Zee Business. He has been working at LiveMint Digital since April 2021. During these two decades of journey in mainstream media, Asit has mainly covered external affairs, markets and personal finance. However, his earliest beats include railways, SME, MSME, and politics (Congress beat). Some of his features on political, economic, and foreign policy are documented in the parliamentary records. <br><br> While pursuing his MA (Mass Communication, Session 2004-06), Asit began his media career as a stringer at All India Radio in Varanasi. At AIR Varanasi, Asit worked with the Gyanvani, Yuvvani and Vividh Bharti teams. After working for nearly one year at AIR Varanasi, he shifted to print journalism and started working as a stringer for the HT Media Ltd, Varanasi. At HT Media Ltd in Varanasi, he covered the BHU beat. <br><br> Asit has also worked with some brokerage houses. He has worked with Religare Broking and India Infoline, where he assisted the research team in developing and executing trade strategies for intraday cash, F&O, and commodities. <br><br> Asit is a Gold Medalist in MA (Mass Communication) from BHU, Varanasi. He did his BSc. (Hons) in Mathematics from Magadh University, Bodh Gaya. Asit was a National Talent Scholarship holder during his senior secondary studies (1988-91).

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