Reliance shares gain over 2%: Why is RIL stock rising today?

Reliance Industries shares rose after Jio Platforms filed its draft papers for an IPO. The move sharpened focus on value unlocking and the group's next growth engines.

In Short

• Reliance shares rose over 2% after Jio Platforms began IPO process
• Jio IPO seen as major value unlocking for Reliance shareholders
• Reliance focusing on AI, green energy, and retail expansion

Reliance Industries shares climbed more than 2% on Monday after Jio Platforms formally kicked off its stock market listing process, raising hopes of a major value-unlocking event for shareholders.

The stock rose as much as 2.8% during the day to touch Rs 1,345 on the BSE before trimming some gains. At around 10:44 am, Reliance shares were trading at Rs 1,336, up 2.04%, according to BSE data. The stock opened at Rs 1,324.90 and hit an intraday high of Rs 1,345.45. It remains about 17% below its 52-week high of Rs 1,611.20.

The rally comes after Jio Platforms filed its draft red herring prospectus (DRHP) with market regulator Sebi for what could become India's largest-ever initial public offering (IPO).

JIO IPO TRIGGERS VALUE-UNLOCKING HOPES

The biggest reason behind the rise in Reliance Industries shares is the progress on the long-awaited Jio IPO.

At Reliance Industries' 49th Annual General Meeting (AGM) on Friday, Chairman Mukesh Ambani described the proposed listing as the company's most important "value creation milestone" of the year. He said the IPO would unlock significant value for Reliance shareholders while offering an attractive investment opportunity to new investors.

For years, investors have argued that the value of Jio was not fully reflected in Reliance Industries' share price. The listing is expected to provide a clearer market valuation for the telecom and digital services business, which has become one of Reliance's biggest growth engines.

Reliance Industries currently owns 66.43% of Jio Platforms, meaning any increase in Jio's valuation could directly benefit Reliance shareholders.

INDIA'S BIGGEST IPO IN THE MAKING

According to the DRHP, the Jio IPO will consist entirely of a fresh issue of up to 27 crore equity shares and will not include an offer-for-sale component. This means all the money raised through the issue will go directly to Jio Platforms.

The proposed IPO is expected to be one of the biggest public offerings in India's history and could potentially surpass Hyundai Motor India's Rs 27,859 crore IPO, which currently holds the record for the country's largest listing.

Investors are viewing the filing as a major milestone after years of speculation over when Reliance would finally bring Jio to the stock market.

AI, GREEN ENERGY AND RETAIL ALSO IN FOCUS

While the Jio IPO grabbed most of the attention, investors also cheered updates on several other growth businesses at the AGM.

Reliance said its artificial intelligence plans are moving from the planning stage to execution. The company aims to commission the first 120 MW capacity at its Jamnagar sovereign AI hub by the end of FY26. The group plans to focus on affordable and multilingual AI solutions for consumers, businesses and government clients.

The company's new energy business also made progress. Reliance has already commissioned solar cell and module facilities, while the first phase of its 40 GWh battery gigafactory is expected to go live this year. The company expects the business to begin generating revenue from FY27.

Reliance also highlighted progress in its oil-to-chemicals (O2C) business, where it is using artificial intelligence and digital technologies to improve efficiency and productivity. The company said it is working towards building what it describes as the world's first fully autonomous refinery.

RETAIL EXPANSION PLANS BOOST SENTIMENT

Investors also took note of Reliance Retail's next phase of expansion.

Mukesh Ambani said the company plans to build large manufacturing and export platforms across categories such as beverages, daily essentials and fresh produce. Reliance is also expanding its garments business with a focus on offering better-quality products at competitive prices.

The market reaction suggests investors are looking beyond the near-term challenges in Reliance's refining business and focusing on the group's future growth drivers.

The Jio IPO provides a potential trigger for value unlocking, while the company's ambitions in artificial intelligence, green energy and retail expansion offer multiple growth avenues over the coming years.

With the Jio listing process now officially underway, investors will closely watch the next steps in what could become one of the most closely tracked IPOs in India's corporate history.

- Ends