Corporate Grapevine     

Published: April 30, 2025
Updated: April 30, 2025

How will market respond to RIL Retail, Jio listing?

Analysts expect Reliance Industry’s consolidated capex to moderate to Rs 1.25-1.3 trillion annually, as higher in vestments in New Energy offset the decline in the RJio capex. However, with capex having likely peaked, analysts anticipate strong free cash flow generation and a decline in net debt. The company has announced Rs 75,000 crore in New Energy and a similar amount for petrochemical ex pansion for the coming years.

For Reliance Retail (RRVL), analysts at Motilal have assigning a blended EV/EBITDA multiple of 28x (30x for core retail, 6x for connectivity), valuing RRVL at Rs 8.8 trillion and RIL’s attributable stake at Rs 520/share (earlier Rs 515/share). RJio, on the other hand, is valued using DCF at ~13x FY27E EV/EBITDA, implying an enterprise value of Rs 11.4 trillion ($ 134 billion), with an additional $ 10 billion for other JPL offerings. After adjusting for net debt and minority interest, the value attributable to RIL is Rs 525/share (earlier Rs 510/share).

As both Retail and Jio are expected to be listed by this year-end, it would be interesting to see how RIL shares behave in the market.