Jio IPO listing: Shares jump 21.36% at debut; company becomes top telco by market cap
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After attracting a strong response to its record ₹30,213-crore initial public offering (IPO), Jio Platforms, the digital and telecom arm of Reliance Industries (RIL), made a strong debut on the BSE and NSE on Wednesday, in line with Street expectations. The stock made a strong debut despite weakness in the broader market, with the benchmark Sensex and Nifty falling by 1% each.
Jio Platforms shares listed at ₹1,358 on both the BSE and NSE, a premium of 21.36% over the issue price of ₹1,119. At the listing price, the company’s market capitalisation stood at ₹12.50 lakh crore.
Meanwhile, shares of parent Reliance Industries were trading 0.46% lower at ₹1,194.50 on the BSE, valuing the company at a market capitalisation of ₹16.15 lakh crore.
The listing was broadly in line with Street expectations, with Jio Platforms commanding a grey market premium (GMP) of over 22% ahead of its market debut. The GMP stood at ₹248 at the time of reporting, indicating an estimated listing price of ₹1,367 and a potential gain of 22.16% over the issue price.
Analysts had expected a positive debut, while advising investors with a long-term investment horizon to remain invested.
Abhinav Tiwari, senior research analyst at Bonanza, had projected 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 corrected after listing.
Sarvam Goel, founder of Pocketful, expected the listing to attract strong investor interest, supported by Jio’s large subscriber base, leadership in telecom and expanding digital businesses. However, he cautioned that much of the company’s future growth potential might already be reflected in its valuation.
Overtakes Airtel as India’s top telco by market cap
With its listing, Jio Platforms has become India’s most valuable telecom company, overtaking Bharti Airtel, whose market capitalisation stood at ₹12.08 lakh crore at the time of reporting. Jio now ranks as India’s second-most valuable listed company, behind its parent, Reliance Industries, valued at around ₹16.15 lakh crore.
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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