Kolkata: Reliance Industries share price is in focus in Dalal Street. The shares of India’s most valuable company have been under selling pressure for
the past one month. During this period, the stock has slipped by more than 7%. On Monday, October 12, at 1:15 pm, the company’s stock was trading at Rs 1,156.20, down by 1.2%. In such a situation, the market is keeping an eye on the proposed IPO of Jio Platforms. The pressure on Reliance shares has increased after the figures for the valuation of the IPO came out lower than the earlier estimates. However, market experts are also looking at this fall from the perspective of the possibility of the company’s value being unlocked in the long term.
Jio Platforms IPO probable price band
According to reports, the price band for Jio Platforms’ IPO could be between ₹1,065 and ₹1,119 per share. Therefore, some investors are viewing the current decline in Reliance shares as an opportunity to enter at a lower price.
The report states that Jio Platforms has been valued at about $114 billion, or ₹10.3 lakh crore. This is lower than previous estimates of $130 billion to $170 billion. This has dampened market expectations regarding valuation and put pressure on Reliance’s stock.
Long-term value
But Jio Platforms’ IPO could unlock long-term value for Reliance. The IPO is primarily designed to raise capital through the issuance of new shares. This is expected to represent approximately 2.9% of the company’s equity after the IPO. This means that Reliance Industries is not directly raising funds by selling its stake. Reliance is expected to retain approximately 64.5% of Jio Platforms’ stake. The proceeds from the IPO are expected to be used by Jio Platforms to repay debt and expand its business. However, the IPO’s valuation, listing price, and post-listing stock performance will provide a better understanding of its true market value.
What is the target for Reliance shares?
From a technical perspective, the ₹1,200 level is considered a key resistance for Reliance Industries shares. If the stock closes above this level, it could rise to ₹1,265. On the downside, the ₹1,145 level is immediate support, while ₹1,120 is considered a significant support. If the stock continues to decline, investors will be watching these levels. However, no target is guaranteed in the stock market. It’s important to consider your risk appetite and investment horizon before investing.
Will Jio IPO pump up RIL shares?
The Jio Platforms IPO could prove significant for Reliance Industries in the long term, as it will help unlock the value of Jio’s business. However, low estimated valuations, weak signals related to the energy business, and market sentiment could put pressure on the stock for the time being. In such a scenario, the ₹1,200 level will be crucial for Reliance’s stock’s next upward move. Sustaining above this level could lead to a level of ₹1,265. On the downside, support levels of ₹1,145 and ₹1,120 will be crucial. Demand for the IPO and the performance of Jio Platforms after listing could also impact Reliance’s stock’s movement. The Jio Platforms IPO bidding process will close on October 23.
(Disclaimer: This article is only meant to provide information. News9 does not recommend buying or selling shares or subscriptions of any IPO, Mutual Funds, precious metals, commodity, REITs, InvITs and any form of alternative investment instruments and crypto assets.)
