ewsba.se
Jio Platforms share price: After the bumper listing of Reliance's Jio Platforms in the Indian secondary market, investors and market observers are busy calculating how the Jio Platforms share price movement will impact Reliance Industries Ltd (RIL) shares. Their guess is right because the Jio Platforms patent company, Reliance Industries, holds around a two-thirds stake in the newly listed Reliance Group company.
Connecting the company's relations and their impact post-listing, Arun Kejriwal, Founder of Kejriwal Research and Investment Services, said, “Jio Platforms shares have been listed on the NSE and BSE after the business demerger from the parent organisation, Reliance Industries Ltd. Despite the business demerger, RIL holds around two-thirds of the stake in Jio Platforms. After listing at ₹1,358 per share, Jio Platforms' market cap comes to around ₹12.50 lakh crore. RIL owns around 65% sake in Reliance Jio after Jio Platforms' share price listing. So, in terms of market capitalisation, around ₹8.125 lakh crore [(65/100) x ₹12.50 lakh crore] market cap in Jio Platforms belongs to RIL.”
Avinash Gorakshkar, Founder of Avinash Mentor Research, said, “A patron company trades at around 15% to 20% discout against its shareholding in the listed entity. So, one should not take the exact Jio Platforms market cap, which comes in sync with the shareholding of the parent company.”
So, the exact Jio Platforms market cap that will impact Reliance Industries shares would come around ₹6.50 lakh crore [(0.80/100) x ₹8.125 lakh crore].
Gorakshkar said that Reliance share price today is around ₹1,175 per share on the NSE, with a market cap of around ₹16 lakh crore. Equating ₹6.50 lakh crore market cap of Jio Platforms belonging to RIL and their respective shares, the additional ₹6.50 lakh crore market cap of Jio Platforms would come around ₹477 [(1175/16) x ₹6.50].
“So, due to the strong debut of Jio Platforms share price on Dalal Street, one can expect the Reliance share price to appreciate by around ₹477 per share to around ₹1,650 in the medium term, provided Jio Platforms continue to sustain at higher levels,” Avinash Gorakshkar said.
Decoding the impact of the ₹100 per share movement in Jio Platforms shares on Reliance Industries shares, Avinash Gorakshkar said, “ ₹477 addition in the RIL share price is due to the Jio Platforms share listing price of ₹1358. So, ₹100 movement in Jio Platforms shares would mean around ₹35 [( ₹477 / ₹1358) x 100] per share movement in Reliance shares in the same direction.”
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).
Catch all the Business News , Market News , Breaking News Events, JIO IPO Listing Today LIVE and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.