Reliance Jio IPO will be stock rerating catalyst for Airtel: CLSA

The much-anticipated IPO of Reliance Jio can trigger a re-rating in the stock of rival Bharti Airtel, both of which control 78% of India’s mobile market, according to global brokerage firm CLSA.

“BUY-rated Reliance Industries holds 67% of RJio and valuation is 60% higher than the 33% stake from the 2020 sale that raised US$20bn. We also expect RJio’s planned IPO to serve as a further catalyst for BUY-rated Bharti stock,” CLSA analyst Deepti Chaturvedi said.