Jio Platforms IPO could see another tariff war—to hike telecom prices

Reliance Jio and Bharti Airtel Ltd recently eliminated the cheapest pricing layers to increase the average revenue per user with an important telecom industry metric. From La250, Airtel has a higher bar of Jio than that. La208.8.

Increased telecom tariffs will help Jio platforms to increase the capital return used – how efficiently a company uses its capital to make a profit and attracted investors for a successful public offering.

Reliance Jio, Jio Platforms, Reliance Industries Ltd. A tariff hike by Jio will leave a place to increase Airtel’s prices.

Reliance Jio has more than 500 million subscribers, while Bharti Airtel and Vodafone Idea have 362.8 million and 197.7 million subscribers, respectively.

“Jio’s public offering (the first half of 2026) is subject to the necessary approvals, we believe that it increases the likelihood of a 15% tariff hike in the telecom business until November 25-December, and therefore it will be positive for the JM financial IPO, although it will be exposed to potential valuation,” he said.

JP Morgan analysts are waiting for another telecom tariff increase next year.

“We believe that this event (the public offering of the Jio platform) increases the possibility of tariff increases (we cook in November) towards the end of the CY25 (we cook in 26 years), at the bottom of the price table (the capital return for the sector) is beyond the last actions at the bottom of the last actions (on November 26).

The analysts set the valuation of Reance Jio as 133 billion dollars, and an estimation against the earnings, taxes, depreciation and the earnings before the income of the interest, meant 13 times more over 2026-27 operating value.

What are the shareholders for

Some of the analysts are waiting for the Jio Platform’s public market list to weigh Reliance Industries’ shares.

In a note on August 29, Nuvama Corporate Stock Analysts, “Jio may have higher value, while RIL shareholders (company) may not benefit greatly due to the valuation discount.” He said.

On the other hand, CITI analysts, Jio Platform’s list does not require a significant reduction for the reliance industries, because Indian securities and stock exchange board plans to reduce the minimum public offer size from 5% to 2.5% for large companies.

This means that large companies can only dilute a 2.5% stock.

In a note of 31 August, Citi analysts limit the company discount concerns for Jio’s RIL POST list given lower buoy. ” He said. Sebi’s proposal also removes an important liquidity obstacle that can include a $ 3 billion stock supply for Jio Platform’s public offering.

Reliance Industries shares did not change at NSE at 14:15 on Monday with an increase of 0.23%. La1,360.30, Nifty increased by 50 0.76%.