Mumbai: Shares of Reliance Industries’ digital and telecom subsidiary, Jio Platforms Ltd, made a strong debut on the NSE and the BSE on Wednesday, following its Rs 30,213-crore initial public offering (IPO).
Jio Platforms shares were listed at Rs 1,358 apiece on BSE and NSE, a premium of 21.36 per cent to the issue price of Rs 1,119 per share. The market capitalisation of Jio Platforms crossed Rs 12.5 lakh crore after the listing, making it the second largest listed company in India.
The public issue, which was India’s biggest IPO, attracted strong investor demand, with the issue subscribing 22.19 times overall. Qualified institutional buyers led the bidding, subscribing 70.55 times their allotted portion.
Investors will watch out whether the company can sustain revenue growth, improve profitability and execute its expansion plans while maintaining healthy cash flows. The shares were trading flat after a strong opening.
Brokerage firms Nomura, Motilal Oswal Financial Services and Elara Securities have initiated their coverage on Jio Platforms shares with ‘Buy’ ratings.
Nomura said that Jio, once the disruptor, is now the leader. It has 42 per cent of the country’s wireless subscribers, 60 per cent of data traffic, and 43 per cent of home broadband. “In our view, the listing will likely push Jio Platforms, the price setter, towards steady tariff hikes that peers can follow. We estimate a 13.5 per cent EBITDA CAGR over FY26-29,” Nomura said.
It initiated coverage on Jip Platforms shares with a ‘Buy’ rating and a target price of Rs 1,340.
Motilal Oswal expects rising profitability and range-bound capex should generate a cumulative FCF of Rs 1.46 lakh crore over FY26-29 and enable Jio Platform to achieve a net cash position by FY29. It initiated coverage with a ‘Buy’ rating and a target price of Rs 1,350.
The brokerage firm believes Jio Platforms could trade at a premium to Bharti’s India business over the near-term, driven by its market leadership, greater influence over industry tariffs, and low liquidity (free float of less than 3 per cent).
(IANS)
