Most brokerages are pleasantly surprised by the kind of valuation in the stake sale of Reliance tower business, valuing it at USD 6.7 billon. Most brokerages estimated it anywhere between USD 2-4 billion. So huge upside are seen on the valuations.

The key reason for disparity is that the company has estimated the capex recovery between 11-14% whereas the brokerages estimated it at 11%. Assumption on the external occupancy has also been different. The company estimated external occupancy at 40% whereas the brokerages estimated it at 30%.

Most brokerages are keeping to the base estimates to keep some kind of margin safety. Price estimates given by the brokerage company range between Rs 600 to Rs 690 averaging at Rs 650 with ML being the most aggressive valuing it at Rs 690.