Next key trigger for RIL shares could be likely IPO by Jio Platforms: SP Tulsian

Reliance Industries' telecom arm Jio Platforms has roped in its sixth global investor in 6 weeks : Abu Dhabi-based global investment company Mubadala will pick up a 1.85 percent stake in it for Rs 9,093.6 crore. In an interview with CNBC-TV18, stock market expert SP Tulsian of sptulsian.com shared his views on the RIL stock.

“On this Jio Platform monetisation, I think that every placement which we have seen of the Abu Dhabi now Mubadala is giving good valuation or expected to give good valuation to the primary market listing as well as the secondary market thereafter to the Jio Platforms. Obviously the Jio Platforms higher valuation will translate into capturing the higher value on sum of part basis into the RIL also. Though I was expecting it to come to an end but Rs 87,600 crore having mobilised, now I think that one tranche of Microsoft is remaining which may see the dilution of over 3 percent for maybe about USD 2 billion. If that comes in then thereafter the preparation for all this IPO of Jio Platforms will start. That will be seeing giving very good valuation to the company that is Jio Platforms,” he said.

On RIL, he further mentioned, “My target of Rs 10 lakh crore market cap and Rs 1,590 has already been captured, which I have been giving for this week. People have been little apprehensive that maybe after the rights issue, the share price will fall and all sort of things but I think that the newsflows, which we have seen, shows the might of the RIL that they can raise Rs 1 lakh crore by part monetisation, maybe till now they have monetised only 19 percent in Jio Platforms and even if they monetise 22 percent, they can mobilise Rs 1 lakh crore and the largest rights issue have evoked such a good response of Rs 54,000 crore, all things will definitely be adding and we should allay the fears of many of the long-term investors with this global player coming into the Jio Platforms where the larger part of the valuation will get reflected into the share price of RIL also. So as of now, till this newsflow of Jio Platforms IPO and the monetisation of parts taking oil-to-chemical (O2C) business comes in, I keep my target of Rs 1,800 on the share price.”