Currently since reliance jio is a subsidiary of reliance industries people are buying in but what will happen when reliance jio starts it IPO or starts trading separately? Will there be erosion in shares of reliance industries?
In such case RIL can give shares of Jio to shareholders of RIL to make-up for effect that will have on RIL’s price.
I am asking if there will be significant effect on price?
Currently reliance stock is standing at such levels just because of JIO and on expectations that its investments and the possibility of entering into new segments will be successful. But in reality, it’s just the JIO that has become successful.
If you see its fundamental you’ll find that its other business is either in loss or moving towards that trend.
So if JIO starts trading separately, then in order to be successful Reliance industries have to come up with similar successful products/company that does not just cover the loss from its other business but also give extra profit.
If you think reliance can do this because it is certain that JIO will launch the IPO, then it can be worth investing in it.
I hope this helps