Reliance Industries’ (RIL) stock gained over 2 per cent in intraday deals on Monday and hit a high of Rs 1,345.45 after the company’s 49th annual general meeting on Friday. The same day, Jio Platforms filed a Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) for the Reliance Jio Infocomm initial public offer (IPO). Within hours, Nomura, Emkay Global, Antique Stock Broking, Motilal Oswal and Nuvama reset their notes. Every one of them kept a Buy. The targets now sit between Rs 1,640 and Rs 1,765, and the reasons each house gives for its call diverge as sharply as the price spread.
Jio’s DRHP Sets Up India’s Biggest-Ever IPO
The DRHP filed on Friday gives investors their first concrete shape of what the Jio listing will look like. The structure is a fresh issue only, with no offer for sale from existing investors, and the size pulls Jio past every IPO India has run before it.
Jio Platforms is looking to raise capital through a fresh issue of 270 million equity shares with a face value of Rs 10 each. Up to Rs 27,500 crore of the proceeds is earmarked to prepay certain borrowings availed by its material subsidiary, Reliance Jio Infocomm Ltd (RJIL), according to the DRHP. People aware of the matter told Mint that Jio Platforms plans to raise an additional Rs 4,500 to Rs 7,500 crore for general corporate purposes, which puts the total IPO size at Rs 32,000 to Rs 35,000 crore ($3.4 to 3.7 billion). Jio’s DRHP filing with Sebi and the IPO size breakdown lays out the mechanics. Jio’s earlier March IPO filing roadmap tracks how the structure shifted from an offer for sale to a 100% fresh issue.
The scale overtakes the NSE’s own listing. The National Stock Exchange of India filed its draft papers on 17 June, pegging its IPO size at Rs 30,000 crore (about $3.2 billion). The DRHP also confirms the existing shareholder map: Reliance Industries holds 66.43% of Jio Platforms, Meta Platforms 9.98% through affiliate Jaadhu Holdings LLC, and Google International LLC 7.73%. Jio’s subscriber base stood at 524.4 million at March end, and average revenue per user (ARPU) was Rs 214, against Bharti Airtel’s Rs 259 and Vodafone Idea’s Rs 172 as of December end.
- Fresh issue of 270 million equity shares, face value Rs 10; no offer for sale component
- Up to Rs 27,500 crore earmarked to prepay RJIL borrowings
- Rs 4,500 to Rs 7,500 crore for general corporate purposes
- Total issue size Rs 32,000 to 35,000 crore ($3.4 to 3.7 billion), versus NSE’s Rs 30,000 crore
Reliance Intelligence Goes Live in Jamnagar
Chairman’s day also marked a step change for Reliance Intelligence, the AI unit unveiled a year ago. The unit has moved from planning to execution, with a hard commissioning date attached to its first phase.
Reliance Intelligence will commission the first 120MW of its AI infrastructure in Jamnagar by the end of 2026. The first phase will run an initial fleet of advanced NVIDIA GB300 GPUs, with compute capacity equivalent to more than 75,000 H100 GPUs for AI inference workloads.
Akash Ambani, chairman of Reliance Jio Infocomm, said the capacity could scale to over 200,000 H100 equivalent GPUs, positioning the company among the world’s largest AI compute platforms. Reliance Intelligence is building multilingual AI services designed for 22 Indian languages and announced a suite of consumer applications at the AGM, including JioBharatIQ, AI Vyapar, JioHealthIQ, JioLearnIQ and JioKrishiIQ. The Reliance Intelligence Jamnagar AI infrastructure roadmap also covers partnerships with Google and Meta, the latter through a joint venture focused on operationalising the open-source LlaMA family of models for Indian enterprises.
The AI pitch sits on the same renewable-energy backbone the group is building in Kutch, and it threads through the consumer business: a “Hey Jio” voice assistant for call transcription, summarisation, cab and food booking, and an AI-rewired MyJio app handling roaming packs, eSIM activation and customer support, all slated to roll out to Jio’s more than 500 million users later this year.
Five Brokerages Agree on Buy and Compete on the Story
Every major note that came out of the AGM weekend carried a Buy. Targets cluster in a Rs 125 band, and the spread is what tells the story.
Nomura holds the lowest target of the five at Rs 1,640, Motilal Oswal sits at Rs 1,655, Antique Stock Broking at Rs 1,670, Emkay Global at Rs 1,680, and Nuvama at Rs 1,765. The consensus is unanimous on the direction of the call and the three catalysts that drive it: the Jio IPO, Reliance Intelligence, and the New Energy ramp from FY27. The five houses weight those three levers differently, and that weighting is where the targets separate.
| Brokerage | Rating | Target (Rs) | Key catalyst emphasis |
|---|---|---|---|
| Nomura | Buy | 1,640 | Reliance Intelligence, Jio unlock |
| Emkay Global | Buy | 1,680 | O2C, New Energy commercialisation FY27 |
| Antique Stock Broking | Buy | 1,670 | Five-year EBITDA doubling, ROCE re-rating |
| Motilal Oswal | Buy | 1,655 | Digital as 80% of incremental EBITDA, capex peak |
| Nuvama | Buy | 1,765 | Jio plus New Energy FY27, RI/RCPL growth engines |
Why Nomura Calls the AI Hub an ‘Optionality Play’
Nomura’s note frames Reliance Intelligence as the upside most under-priced in the stock. The note calls the Jamnagar AI hub an early-stage, capex-heavy optionality play, with a clear commissioning date attached.
Reliance Intelligence moves from plan to execution, with the Jamnagar sovereign artificial intelligence (AI) hub targeting the first 120MW by end-FY26E. It represents an early-stage, capex-heavy optionality play for Reliance.
Nomura maintains a Buy on RIL with a sum-of-the-parts (SoTP)-based target of Rs 1,640. On the Jio listing, the note says it will unlock value of the digital business inside RIL and open an entry point for new investors who want exposure purely to the telecom business. The next round of catalysts, in Nomura’s reading, runs in this order: ramp-up of the New Energy business with revenue contribution starting FY27, growth of the AI business, and the potential listing of the Retail business.
Emkay and Antique Anchor Their Thesis on a Five-Year Doubling
Emkay and Antique both lean on the consolidated earnings trajectory. They differ on which business pulls the next leg of growth.
Emkay says the next phase of growth in the oil-to-chemicals (O2C) business will be driven by investments in higher-value chemicals and materials. The 3mmtpa PTA project at Dahej is progressing well and is expected to strengthen RIL’s position in the polyester value chain, while the 1.2 mmtpa PVC project at Nagothane is expected to reduce India’s import dependence and address domestic demand from infrastructure, construction and consumer segments. New Energy business targets were reiterated, with commercialisation of the photovoltaic (PV) segment and a meaningful contribution to RIL’s financial performance from FY27. Emkay retains Buy with a target of Rs 1,680.
Antique picks up the same five-year doubling line. The company has once again outlined a target of more than doubling consolidated EBITDA over the next five years, implying EBITDA of Rs 4.2 to 4.5 trillion by FY31. Achieving this, the note says, could potentially double the return on capital employed (ROCE) and drive a meaningful re-rating of the stock. Antique’s milestone path runs from the Jio IPO to the commissioning of a 10 GW integrated solar project and a 40 GW battery plant this year, followed by the Kutch solar, battery and hydrogen build. The brokerage reiterates Buy with an SoTP target of Rs 1,670 a share.
Motilal Oswal Says the Capex Peak Has Passed
Motilal Oswal’s note reads the AGM as the moment the cash flow story takes over. The peak of capex in digital services is likely behind, and the math from there is the report’s centrepiece.
Motilal Oswal expects RJio to remain the biggest growth driver, with digital to contribute around 80 per cent of RIL’s incremental EBITDA and an 18% EBITDA CAGR over FY26-28E. The driver is the wireless tariff hike of around 15% in Q2-FY27, market share gains in wireless, and continued ramp-up of Homes and Enterprise offerings. The brokerage builds in a CAGR of around 9 to 10 per cent in RIL’s consolidated EBITDA and PAT over FY26-28E. It models an annual consolidated capex of Rs 1.25 trillion for RIL over FY26-28E, on the view that the peak of capex in digital services is likely behind, which should lead to healthy free cash flow (FCF) generation of nearly Rs 1 trillion over FY26-28E and a corresponding decline in consolidated net debt. Motilal Oswal reiterates Buy with an unchanged target of Rs 1,655.
- 18% EBITDA CAGR over FY26-28E for RJio
- ~80% of RIL’s incremental EBITDA from digital services
- ~15% wireless tariff hike slated for Q2-FY27
- Rs 1.25 trillion annual consolidated capex over FY26-28E
- ~Rs 1 trillion free cash flow over FY26-28E as capex peaks
Why Nuvama’s Top Target Carries a Sharp Caveat
Nuvama’s note sets the top of the brokerage range at Rs 1,765, and also runs the toughest internal check on whether the stock is already pricing in too much.
The New Energy business will start contributing meaningfully from FY27, with solar module and cell plants operational and scaling to 20GW capacity. Nuvama reckons that on 10GW of module and cell capacity, it could add 5% to FY26 profit after tax. Reliance Intelligence and Reliance Consumer Products will be the new growth engines, the note says, and on the Jio IPO, premium valuation is likely but RIL shareholder gains may be limited by a holding company discount. The stock trades at 23x/19x FY27/28E earnings per share (EPS). Nuvama maintains a Buy with a target of Rs 1,765. Risks flagged include a slowdown in global demand or larger-than-expected capacity additions that could hit refining and chemical margins, and weak natural gas prices that could lower profitability of upstream assets.
Our reverse DCF calculation suggests that (especially) for Jio Platforms and Retail, the market is baking-in very high earnings growth expectation sustaining over the next ten years, which – by any measure – is a tall ask.
What Holds the Five Calls Together
Reading the five notes side by side, the common thread is a buy on a three-leg roadmap: the Jio IPO unlocks the digital business, Reliance Intelligence seeds the AI optionality, and New Energy ramps from FY27. The split is in which leg each house is willing to lean on.
Nomura is the most explicit on AI as the long-dated lever, Emkay and Antique on the five-year doubling of consolidated EBITDA, Motilal Oswal on the post-capex-peak cash flow, and Nuvama on the growth-engine trio of Jio, RI and RCPL. Nuvama’s reverse DCF is the closest thing to a dissent in the group, and it lives inside the highest target rather than outside the consensus. Reports cited in the brokerage coverage point to a July 2026 or H2 FY27 listing window for Jio, subject to regulatory clearances.
Frequently Asked Questions
How large is the Jio IPO and how does it compare with NSE?
The Jio DRHP filed on Friday pegs the issue at Rs 32,000 to Rs 35,000 crore ($3.4 to 3.7 billion), with up to Rs 27,500 crore earmarked to prepay borrowings of subsidiary Reliance Jio Infocomm and Rs 4,500 to Rs 7,500 crore for general corporate purposes. NSE’s own DRHP, filed on 17 June, targets Rs 30,000 crore (about $3.2 billion), so Jio’s size is set to overtake it.
When is Jio Platforms expected to list?
Coverage around the AGM points to a July 2026 or H2 FY27 listing window, subject to Sebi’s review of the DRHP and final regulatory clearances.
What is the Reliance Intelligence AI hub plan?
Reliance Intelligence will commission the first 120MW of AI infrastructure in Jamnagar by the end of 2026, starting with an NVIDIA GB300 GPU fleet whose compute capacity is equivalent to more than 75,000 H100 GPUs for AI inference workloads. Akash Ambani has said capacity could scale to over 200,000 H100 equivalent GPUs.
Which brokerage has the highest target price on RIL post-AGM?
Nuvama carries the highest target at Rs 1,765 with a Buy rating, on the view that Reliance Intelligence, Reliance Consumer Products and the Jio IPO will all be growth engines.
What is the consensus rating across the five brokerages?
All five houses that have re-rated RIL after the 49th AGM, Nomura, Emkay Global, Antique Stock Broking, Motilal Oswal and Nuvama, maintain a Buy. Targets range from Rs 1,640 at Nomura to Rs 1,765 at Nuvama.
