Bank of America has pinned a $107 billion valuation tag on Mukesh Ambani’s Jio Platforms, valuing the Indian telecoms and digital conglomerate 64.6% higher than the $65 billion at which it attracted the likes of Meta, Google and other technology giants in a mammoth fundraising in 2020.
The valuation reassessment comes at a time when Reliance is expected to undertake initial public offerings for both Jio Platforms and Reliance Retail. In 2020, Jio Platforms raised over $20 billion from a series of investments by companies like Meta, Google, Silver Lake, Vista Equity Partners and others. Reliance Retail, which raised about $7 billion in 2020, recently raised about $1.85 billion at $100 billion valuation.
At its annual general meeting in 2019, Reliance Industries stated its plan for IPO of both the businesses in the next five years. The firm listed its financial services arm Jio Financial last year.
In August, Ambani said he will lead Reliance Industries for five more years and mentor his children to take the $211 billion Indian oil-to-telecom giant to greater heights of growth and value in the decades ahead. As part of the succession plan, Reliance Industries appointed Ambani’s children — Isha, Akash and Anant — as non-executive directors to the board.
Bank of America said in a note to clients that it expects Jio Platforms, which dominates the Indian telecom market, to continue to add subscribers this year and make deeper inroads with the advanced feature phone JioBharat and wireless broadband device JioAirFiber. The investment bank also expects the Indian telecom industry to hike tariffs in the second half of the year, it said.
“On enterprise business we see three areas where Jio Platforms could capitalize on: government contracts, SMEs and corporates (by offering VAS),” BofA added.
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Bank of America has recently evaluated Mukesh Ambani’s Jio Platforms at a remarkable $107 billion, a significant 64.6% increase from its $65 billion valuation in 2020. This earlier valuation had attracted major technology players like Meta, Google, and others during a substantial fundraising effort.
This revaluation emerges as Reliance gears up for potential initial public offerings (IPOs) of both Jio Platforms and Reliance Retail. In a notable fundraising spree in 2020, Jio Platforms secured over $20 billion from several prominent investors including Meta, Google, Silver Lake, Vista Equity Partners, and more. Additionally, Reliance Retail, after raising approximately $7 billion in 2020, recently achieved about $1.85 billion in funding, valuing the company at $100 billion.
At the 2019 annual general meeting, Reliance Industries announced plans for IPOs for these two entities within the next five years. Last year, it successfully listed its financial services division, Jio Financial.
In a significant announcement made in August, Ambani expressed his intention to continue leading Reliance Industries for another five years. He also plans to guide his children in managing the $211 billion conglomerate, spanning from oil to telecom, ensuring its continued growth and value in the coming decades. As a part of this succession strategy, Ambani’s children — Isha, Akash, and Anant — were appointed as non-executive directors on the Reliance Industries board.
In a client note, Bank of America highlighted its anticipation for Jio Platforms, a dominant force in the Indian telecom market, to maintain its subscriber growth and make further advancements with products like the JioBharat feature phone and the JioAirFiber wireless broadband device. The bank also predicts a possible hike in telecom tariffs in the latter half of the year.
Bank of America also identified three key areas for Jio Platforms’ potential growth in the enterprise sector: securing government contracts, targeting small and medium-sized enterprises (SMEs), and engaging corporates by offering value-added services (VAS).