Bank of America has reevaluated the valuation of Mukesh Ambani’s Jio Platforms, placing it at over $100 billion. This new valuation is 64.6% higher than the $65 billion it garnered during a massive fundraising in 2020, which saw investments from Meta, Google, and other tech giants.
Key Takeaway
Bank of America has raised the valuation of Jio Platforms, a major player in the Indian telecom and digital sector, to over
00 billion, signifying significant growth potential and investor confidence in the company’s future prospects.
Reliance’s IPO Plans and Recent Developments
Reliance is gearing up for initial public offerings for both Jio Platforms and Reliance Retail. In 2020, Jio Platforms raised more than $20 billion from investments by companies such as Meta, Google, Silver Lake, and Vista Equity Partners. Meanwhile, Reliance Retail, which raised about $7 billion in 2020, recently secured approximately $1.85 billion at a $100 billion valuation.
During its annual general meeting in 2019, Reliance Industries outlined its intention to launch IPOs for both businesses within the next five years. The company also listed its financial services arm, Jio Financial, last year.
In August, Mukesh Ambani announced his decision to lead Reliance Industries for another five years and guide his children to steer the $211 billion Indian oil-to-telecom conglomerate towards further growth and value in the coming decades. As part of the succession plan, Ambani’s children — Isha, Akash, and Anant — were appointed as non-executive directors to the board.
Bank of America’s Projections and Outlook
Bank of America shared its expectations for Jio Platforms, emphasizing its dominance in the Indian telecom market and predicting continued subscriber growth. The investment bank also anticipates Jio Platforms to expand its reach with the advanced feature phone JioBharat and the wireless broadband device Jio AirFiber. Additionally, it foresees a potential tariff increase in the Indian telecom industry during the latter part of the year.
BofA also outlined three areas where Jio Platforms could capitalize on its enterprise business: government contracts, small and medium-sized enterprises (SMEs), and corporates by offering value-added services (VAS).
