Reliance Industries (RIL) on June 19 said it is moving towards the listing of Jio and Reliance Retail within the next 5 years, the company said in a press release. The company said it has become completely net debt-free and has raised over Rs 1.68 lakh crore in just 58 days, hinting that it will have one of the strongest balance sheets in the world. Stock market expert SP Tulsian of sptulsian.com told CNBC-TV18 that the stock of Reliance Industries may see a big re-rating. He has a target of Rs 1,900 on the stock, which Tulsian believes, it can achieve by March 2021.
“If you compare the Reliance Retail with the DMart, which has a market capitalization of around 1.5 lakh crore with the top line of around 25,000 crores, Reliance Retail RIL has a topline of about 2 lakh crore. So, it is about 7 times the size of the topline as well. I guess the valuation of Reliance Retail could be between 4-5 lakh crore,” as Tulsian told. “Probably the process of the induction of strategic and also financial investors in the Reliance Retail would happen like in Jio Platform,” as told Tulsian. Tulsian said Jio may not see Indian listing as it will not be able to capture the full value of the stock. Reliance Industries (RIL) will list its telecom and retail units within the next 5 years, chairman Mukesh Ambani said at the oil-to-telecoms conglomerate’s 42nd annual general meeting (AGM) Monday.
Ambani further said RIL would induct leading global partners in both its consumer-facing businesses in the next few quarters. RIL shares were up nearly 1% at Rs 1,162 in early afternoon trade on BSE on Monday. Multiple meetings had taken place over the past few months among RIL executives, bankers, and consultants, indicating that Jio’s IPO initiative had picked up the pace. Last month, Jio had reported its seventh straight profitable quarter, with earnings growing at a higher-than-expected 46 % on the back of strong subscriber additions that made it India’s second-largest telco by users.
Increased data usage had helped RIL’s telecom arm offset the impact of a continued drop in average revenue per user (ARPU). The key performance metric had shrunk for the 6th consecutive quarter to around Rs 122 from around Rs 126.1 in January-March as well.