Reliance Industries holding company discount worries are 'unwarranted': Citi stays bullish

Global brokerage firm Citi has maintained its 'Buy' recommendation on Reliance Industries Ltd

. with a price target of ₹1,690 per share.

As highlighted earlier, Citi's stance has been that concerns over a potential holding company discount for RIL, once Jio Platforms lists, are unwarranted in light of the proposed changes to listing requirements by the Securities and Exchange Board of India (SEBI).

Citi expects the market to now align with this view, as SEBI, over the weekend, finalised these changes, reducing the minimum public offer size for IPOs of large companies (over $57 billion market capitalisation, which Jio would comfortably qualify for) from 5% to 2.5% and also materially relaxing timelines for meeting minimum public shareholding requirements.

The brokerage said that this development reinforces two key positives it had previously highlighted:

- It removes a key liquidity overhang for Jio's potential IPO (over $3 billion of share supply, which Citi believes the Indian market can comfortably absorb); and

- It largely dispels holding company discount concerns post Jio's listing, given the low float.

SEBI has relaxed rules on minimum public offer (MPO) and minimum public shareholding (MPS) norms. Analysts believe SEBI's relaxation is a "game-changer" that ensures such large issues are both feasible and less disruptive to market liquidity.

Reliance chief Mukesh Ambani said the digital behemoth would come to public markets in the first half of 2026, aiming to create unprecedented value for investors, similar to that of global peers.

Shares of Reliance Industries closed 0.31% lower on Monday at ₹1,399.30. The stock has gained 15% so far in 2025.