Jio Platforms’ debut could give RIL top 2 slots in Indian m-cap league

ET Intelligence Group: The Reliance Mukesh Ambani group (RIL) will likely command nearly 7% of the total market capitalisation of companies listed on the BSE after the initial public offering (IPO) of its telecom and digital media arm, Jio Platforms (JioP) compared with the current share of under 4%. This reflects a significant value unlocking for investors. In addition, at the higher end of the anticipated valuation band for JioP, the RIL group will host India’s two largest companies by market cap – Reliance Industries with market cap of ₹17.7 trillion and JioP with an estimated market cap of ₹14 trillion. HDFC Bank, Bharti Airtel, and ICICI Bank with respective market caps of ₹12 trillion, ₹11.6 trillion and ₹9.7 trillion will be next on the ranking tally.

The combined market cap of the two companies of the RIL group is expected to be around ₹32 trillion. It will nearly match the current combined market value of ₹33 trillion for HDFC Bank, Bharti Airtel, and ICICI Bank.

At present, the market cap of the companies listed on the BSE is nearly ₹478 trillion. For the Nifty 50 set of companies, the market cap is ₹194 trillion, which implies that the RIL group’s market cap will be over 16% of the benchmark index’s market value.

Globally, Elon Musk promoted Tesla and SpaceX together account for nearly 5% of the total market cap of the US companies. After a strong debut on Nasdaq on June 12, SpaceX commands a market cap of $2.4 trillion, while Tesla’s is $1.3 trillion. The market cap of listed companies in the US is over $77 trillion, according to the data from Bloomberg.
Internationally, technology led companies have been driving overall market valuations to record levels. For instance, Samsung Electronics and SK Hynix, the top South Korean companies based on market value, account for nearly 50% of the country’s market cap. In the case of Taiwan, chip maker TSMC contributes over 40% to the country’s market cap.