Jio IPO to list tomorrow; GMP signals 22% premium, analysts recommend investors to stay invested

Shares of Jio Platforms, the digital and telecom arm of Reliance Industries (RIL), are set to debut on the BSE and NSE on Wednesday, with the grey market premium (GMP) indicating a potential listing gain of around 22%. Analysts expect a positive debut, while advising investors with a long-term investment horizon to remain invested.

Jio Platforms’ GMP stood at ₹251 at the time of reporting. At the upper end of the IPO price band of ₹1,119, this implies an indicative listing price of around ₹1,370 per share, representing a premium of 22.43% over the issue price.

However, the grey market is unofficial, and its premium does not guarantee the actual listing price or investor returns.

Analysts recommend staying invested for the long term

Abhinav Tiwari, senior research analyst at Bonanza, expects Jio Platforms to list at a premium of around 20% to its issue valuation of approximately ₹10.3 lakh crore. He said investors seeking listing gains could consider booking partial profits, while long-term holders should stay invested. Those who missed the IPO could look for an entry opportunity if the stock corrects after listing.

Tiwari highlighted Jio’s scale, including its 53.3 crore customers and share of around 60% of India’s mobile data traffic. He expects growth in the low-to-mid teens over the next three to four years, driven by tariff hikes, higher average revenue per user (ARPU) and expansion into enterprise services, cloud and artificial intelligence (AI).

Sarvam Goel, founder of Pocketful, expects the listing to draw strong investor interest, backed by Jio’s large subscriber base, telecom leadership and expanding digital businesses. However, he cautioned that much of the company’s future growth potential may already be reflected in its valuation.

“While its 5G expansion, broadband services, AI and cloud businesses offer long-term opportunities, much of this growth appears priced in,” Goel said, expecting a positive debut with moderate gains rather than a sharp premium.

He added that overall market sentiment, investor demand and valuations would be key factors determining the stock’s listing performance.

Jio IPO draws strong investor response

The ₹30,213-crore IPO, which was open for subscription from October 21 to 23, was subscribed 22.19 times, according to BSE data. Investors bid for 438.26 crore shares against 19.75 crore shares on offer, with bids worth approximately ₹4.90 lakh crore at the upper end of the price band.

The issue attracted 1.38 crore applications, setting a record for investor participation. Including anchor investor demand, total bids were estimated at around ₹7.4 lakh crore.

Jio Platforms plans to use ₹27,500 crore from the fresh issue proceeds to repay borrowings of its subsidiary, Reliance Jio Infocomm. The repayment is expected to strengthen the company’s balance sheet as it expands its telecom and digital businesses.

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