Jio becomes India’s second-most valuable company: How its listing pushed Reliance past Tatas, Adanis

Jio Platforms has emerged as India’s second-most valuable company, with a market capitalisation of Rs 12.53 lakh crore following its listing on the stock exchanges on October 28 at Rs 1,358, a premium of 21.3 per cent. Reliance Industries (RIL) has retained the top position with a market capitalisation of Rs 16 lakh crore, according to the rankings as of October 28.

With Jio’s listing, the Reliance group companies – including RIL, Jio Platforms and Jio Financial – now have a combined market capitalisation of Rs 29.90 lakh crore, making it the biggest business group in India, ahead of the Tatas and the Adanis. Jio Financial has a market capitalisation of Rs 1.37 lakh crore.

New pecking order

Bharti Airtel, which held the number two spot until Tuesday, now ranks third with a market capitalisation of Rs 12.18 lakh crore, followed by HDFC Bank at Rs 10.43 lakh crore. ICICI Bank occupies the fifth position with a market capitalisation of Rs 9.82 lakh crore, while Tata Consultancy Services (TCS) ranks sixth at Rs 8.78 lakh crore.

State Bank of India (SBI) stands seventh with a market capitalisation of Rs 8.77 lakh crore, followed by Bajaj Finance at Rs 5.63 lakh crore, Larsen & Toubro at Rs 5.25 lakh crore and Life Insurance Corporation of India (LIC) at Rs 4.89 lakh crore. Infosys completes the top 10, with a market capitalisation of Rs 4.50 lakh crore.

The listing provides investors with a separate market valuation for Jio Platforms, a digital services and telecommunications business that was previously housed within RIL. Its standalone valuation could influence how investors assess the value of RIL and its various businesses.

RIL stock price guidance

However, Jio Platforms’ market capitalisation should not be interpreted as an equivalent increase in wealth for RIL or its promoter, the Ambani family. RIL already held a substantial stake in Jio Platforms before the listing, and the value of the business was at least partly reflected in RIL’s share price.

Following the initial public offering (IPO), RIL’s stake in Jio Platforms is expected to decline from 66.35 per cent to 64.41 per cent. At Jio’s market capitalisation of Rs 12.53 lakh crore, RIL’s 64.41 per cent holding would be worth approximately Rs 8.07 lakh crore, assuming the stated ownership and valuation figures apply after listing.

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The market’s response to the listing will therefore be crucial. If RIL’s share price rises as investors reassess the value of its Jio holding, the promoter group’s notional wealth could increase. For instance, a sustained 5-8 per cent rise in RIL’s market capitalisation from Rs 16 lakh crore would increase its market value by Rs 80,000 crore to Rs 1.28 lakh crore. Applying the promoter group’s reported 50.44 per cent holding, this would translate into an increase of approximately Rs 40,352 crore to Rs 64,563 crore in the value of its stake, assuming ownership remains unchanged.

These are illustrative scenarios, not forecasts. The actual impact will depend on Jio Platforms’ trading performance, investor expectations and movements in RIL’s share price.

Jio Platforms’ entry into the market-capitalisation rankings has reshaped the list of India’s most valuable companies, placing it second behind RIL. While the listing offers a clearer picture of Jio’s standalone value, the key measure of wealth creation for the Ambani family will be the change in the value of its existing holdings rather than Jio’s entire market capitalisation.