Reliance Industries Ltd (RIL) shares rose 2.7 percent on Tuesday, extending their two-session gain to 4.3 percent, helped by expectations of a Jio Platforms listing later this month and a higher portfolio weighting from Jefferies.

The stock gained sharply as the market prices in a long-awaited value unlocking following the expected announcement of Jio's IPO, an analyst said.

The RIL stock settled at Rs 1,218 per share on the NSE, up 2.7 percent. It was among the top gainers on the benchmark Nifty.

Jio Platforms Ltd, the digital holding company of Reliance Industries that houses India's largest mobile network, is preparing to launch its much-anticipated initial public offering this month, with internal preparations nearly complete and foreign investors giving "unusually positive" feedback, pointing to a significant premium over listed peers, people familiar with the matter said.

Jio Platforms, which counts Meta and Google among its major foreign investors, also operates AI, cloud and enterprise network businesses.

The IPO is expected to open for public subscription from October 21 to 23, with the anchor book likely to open on October 19 and the shares targeted to debut on the stock exchanges on October 28, subject to market conditions.

The IPO will comprise entirely of a fresh issue of shares and will primarily be used to repay or prepay, in whole or in part, about Rs 27,500 crore of outstanding borrowings of Reliance Jio Infocomm, a unit of Jio Platforms. The remaining proceeds are earmarked for general corporate purposes.

The final pricing and valuation of the IPO have not yet been determined. A decision on pricing is expected to be taken in the coming week, taking into account investor feedback and market conditions, the people added.

Meanwhile, Global investment banking firm Jefferies has also made some tweaks to its model portfolio as per its latest note on October 6.

Reliance Industries will now command a 7.5% weightage in the Jefferies Model Portfolio.

Jefferies increased its weightage on Reliance Inrdustries, as it believes the stock is trading at an attractive valuation at 8.4 times its one-year forward EV/EBITDA multiple, 23 percent below its 10-year average. Possibilities of earnings upgrades and higher gross refining margins also prompted Jefferies to increase its weightage on the stock.