Jio Platforms storms Dalal Street, lists 21% above issue price

Jio Platforms made its debut on the Indian stock market on Wednesday, trading 21% above its issue price. The company's shares opened at ₹1,358 each on both the BSE and NSE, exceeding the IPO price of ₹1,119 by ₹1,358. By the close of the first trading session, Jio's stock had climbed to ₹1,374.50 intraday before settling around ₹1,357.20.

The overwhelming demand translated into 94.5% of the total order flow consisting of buy orders. The IPO valued Jio Platforms at an estimated market capitalisation of ₹12.5 lakh crore. Over the first hour of trading, 96.6 crore shares changed hands, generating a turnover of ₹13,132 crore. Retail investors who bought a single lot of 12 shares at the IPO price saw a listing gain of ₹2,868, while high-net-worth investors purchasing 180 shares reaped a gain of ₹43,020.

Brokerage firm Nomura rated Jio Platforms a buy with a target price of ₹1,340, citing its dominant position in India's wireless subscriber base, data traffic, and home broadband market. The firm estimates a compound annual growth rate of 13.5% for Jio's earnings before interest, taxes, depreciation, and amortisation (EBITDA) over the fiscal years 2026 to 2029.

Motilal Oswal Securities also rated Jio Platforms a buy with a target price of ₹1,350, projecting a 14%, 15%, and 20% compound annual growth rate in Jio Platforms Limited's (JPL) consolidated revenue, EBITDA, and profit after tax (PAT), respectively. Uday Patil, Executive Director at PL Capital, hailed the listing as a "milestone in the Indian capital market" and emphasised its significance as a long-term investment opportunity.

Analysts broadly anticipate the IPO to spur tariff hikes across the telecom sector, with Motilal Oswal Securities projecting a 15% increase in smartphone tariffs by March 2027. The company's home broadband business, which serves 30 million subscribers, is expected to be the second major growth driver. The company's free float is limited to less than 3%.