Reliance Jio listing: Tariff hikes a trigger, but spinoff better option

The current minority investors in Jio may prefer the spin off route and RIL could also consider buyout of current institutional stakeholders in Jio after the spin off if it wanted to shore up stake

A Jefferies report suggesting the possibility of a spinoff, or an IPO of Reliance Jio Infocomm (Jio) has trained the spotlight on the telecom and digital space.

The global brokerage assesses a likely valuation of around $112 billion for a listing.

One of the triggers for the report is that telecom service providers have started to hike tariffs as was widely expected and this could push up average revenue per user (Arpu) for market-leader, Jio and its rivals, Bharti Airtel and Vodafone Idea.

If at all Jio is listed in calendar year 2025, RIL could go about