Jio IPO Has Reliance Shares Rising 3%: Will the Rally Last Till the October 28 Listing?

Reliance Industries shares gain as Jio IPO lifts market sentiment

Reliance Industries Ltd (RIL) shares attracted strong buying interest on Thursday as investors reacted to a major development involving its telecom and digital subsidiary, Jio Platforms. The announcement of Jio’s Rs 30,213-crore initial public offering (IPO) has raised expectations of value unlocking, giving investors a fresh reason to watch the stock.

RIL shares climbed nearly 2.8% to Rs 1,207 during late-morning trade, making the company one of the notable gainers on the Nifty 50. Its market capitalisation reached approximately Rs 16.32 lakh crore.

The bigger question for investors is whether Jio’s proposed stock market debut could do more than lift sentiment in the short term. Brokerages believe the listing could help investors better understand the value of Reliance’s digital business and potentially support a re-rating of RIL shares.

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Jio Platforms IPO sets the stage for a record-breaking listing

Jio Platforms has announced an IPO price band of Rs 1,065 to Rs 1,119 per share. The issue will open for subscription on October 21 and close on October 23, according to the details provided.

At the upper end of the price band, the company aims to raise Rs 30,213 crore through a fresh issue of 27 crore shares. If completed as planned, the offering would surpass Hyundai Motor India’s Rs 27,859-crore IPO in 2024, making it India’s largest-ever IPO.

The issue values Jio Platforms at approximately Rs 10.3 lakh crore, or $108 billion. Unlike offerings that include an offer for sale, Jio’s proposed issue will consist entirely of fresh shares.

Up to Rs 27,500 crore of the net proceeds will be used to repay borrowings of Reliance Jio Infocomm, a material subsidiary. Anchor investor bidding is scheduled for October 19, with the shares expected to list on October 28.

Source: Fortune India and Moneycontrol. Figures reflect reported market and IPO data for October 15, 2026

Why did Reliance Industries shares rise?

RIL shares gained after Jio Platforms announced its IPO price band. Investors are anticipating that the listing could make Jio’s value more transparent and help investors better assess Reliance Industries’ different businesses.

The three main reasons are:

• Value unlocking: Jio will have a publicly traded valuation, making it easier to assess RIL’s stake in the digital business.

• Potential reduction in the holding-company discount: Investors may assign a higher value to RIL if the gap between its market value and the estimated value of its businesses narrows.

• Growth expectations: Telecom tariff increases, 5G services and digital business expansion could support future earnings.

Religare Broking sees 40% upside potential in RIL shares

Religare Broking has maintained its ‘Buy’ rating on Reliance Industries, setting a target price of Rs 1,696. Compared with Thursday’s trading price of Rs 1,207, this indicates potential upside of approximately 40.5%.

The brokerage believes Jio’s independent market valuation could improve transparency in Reliance’s sum-of-the-parts valuation and help narrow the holding-company discount applied to RIL shares.

Its view suggests that investors may benefit from accumulating the stock ahead of Jio’s listing. However, the target price represents a brokerage estimate, not a guaranteed return.

Motilal Oswal highlights value unlocking and a possible re-rating

Motilal Oswal Financial Services has also retained its ‘Buy’ rating on RIL, with a sum-of-the-parts target price of Rs 1,530. This implies an upside of approximately 26.8% from the cited price of Rs 1,207.

The brokerage estimates that RIL’s valuation reflects an 18–36% holding-company discount on its approximately 66.4% stake in Jio Platforms, depending on the valuation multiple assigned to Reliance Retail Ventures.

Motilal Oswal believes investors will continue to gain exposure to Reliance’s retail, energy and emerging businesses even after Jio becomes separately investable.

Debt reduction and telecom tariffs could strengthen Jio’s earnings outlook

Jio’s proposed debt repayment could become another important factor for Reliance investors. Lower borrowings at Reliance Jio Infocomm may reduce interest expenses, improve net profit margins and support stronger free cash flow generation.

Religare also identifies higher average revenue per user (ARPU), premium 5G services and digital offerings as potential earnings drivers.

Motilal Oswal expects the possibility of telecom tariff increases to strengthen following Jio’s IPO and Vodafone Idea’s proposed fundraising. Its estimates factor in a smartphone tariff hike of around 15% in December 2026, potentially supporting approximately 15% EBITDA compound annual growth over FY26–FY29.

These remain expectations rather than confirmed outcomes, making future tariff decisions and subscriber trends important indicators for investors.

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Factors supporting a continued RIL rally:

• Jio IPO: The ₹30,213-crore IPO could unlock value and support RIL’s re-rating.

• Bullish targets: Religare targets ₹1,696, while Motilal Oswal targets ₹1,530.

• Debt reduction: Up to ₹27,500 crore of IPO proceeds is earmarked for subsidiary debt repayment.

• Growth drivers: Improving refining margins, telecom revenues and retail recovery could support earnings.

Retail, oil-to-chemicals and new energy remain important growth drivers

Reliance Industries‘ investment outlook extends beyond Jio Platforms. Reliance Retail could benefit from store expansion and digital commerce, while the oil-to-chemicals business may gain from improving refining economics and a recovery in petrochemical demand.

The group’s investments in solar energy, energy storage and hydrogen could provide longer-term growth opportunities. Motilal Oswal has also highlighted stronger refining and petrochemical earnings, along with improving retail revenue growth and profitability, as potential medium-term catalysts.

These businesses matter because RIL’s share price will continue to reflect the performance of the wider conglomerate, not just Jio’s IPO.

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Here’s what happened today and why traders reacted

The immediate trigger for the rise in Reliance Industries shares was the announcement of Jio’s IPO price band and issue size. The proposed listing brings the value of one of RIL’s biggest growth businesses into sharper focus.

For traders, the development has created expectations that a separate market valuation for Jio Platforms could make Reliance’s overall business structure easier to assess. However, the announcement does not guarantee further gains, and market participants will also track subscription demand, broader market sentiment and the eventual listing performance.

For investors, the key factor is whether the anticipated value unlocking translates into a sustained improvement in RIL’s valuation rather than a temporary rally driven by IPO-related excitement.

What Reliance Industries investors should watch next

The Jio Platforms IPO has strengthened the value-unlocking narrative around Reliance Industries shares, with two major brokerages maintaining bullish ratings and substantial upside targets.

Investors should now monitor IPO subscription figures, Jio’s listing performance, debt reduction, telecom tariff developments and earnings trends across retail and energy.

The rally has improved sentiment, but the next phase will depend on whether these expectations translate into stronger financial performance and a more favourable valuation. Investors should weigh the potential upside against market volatility, execution risks and their own investment time horizon.