Investors are eyeing the listing of Jio Platforms, one of the biggest IPOs ever in the Indian stock market. Now before the listing, global brokerage firm Nomura has issued its first Buy rating on the stock and has expressed the possibility of an increase of about 20%. Let us tell you that this IPO of ₹ 30,213 crore got a tremendous response from investors. Jio IPO issue was subscribed a total of 22.19 times.
Why is Nomura betting on Jio Platforms?
Nomura has given several reasons behind betting on Jio. Nomura said Jio has 42% of the country’s wireless subscribers, 60% of data traffic and 43% of home broadband. Nomura has kept the target price of Jio Platforms shares at ₹ 1,340, which shows a potential upside of 20%.
The huge response to the IPO can be gauged from the fact that it received bids worth more than ₹ 7 lakh crore. Anchor investors placed bids worth about ₹2.5 lakh crore, while bids worth about ₹4.9 lakh crore came from other investors.
Jio Platforms IPO can be listed at a premium of 23%?
This IPO got the most support from institutional investors. Subscription in this category was more than 70 times. At the same time, retail investors also placed bids worth more than ₹25,000 crore.
The number of bids received for Jio Platforms’ IPO was more than the bids received for LG Electronics India’s IPO of about ₹ 4.4 lakh crore. Thus, according to the available data, the IPO of Jio Platforms has become one of the most bid Indian IPOs of the last two decades.
Why is the market keeping an eye on the listing?
Market experts expect a strong listing of Jio’s shares. If the stock debut goes as predicted, Jio Platforms could become India’s second most valuable company in terms of market cap. Reliance Industries will be at the forefront in this matter.
Jio Platforms shares not found in IPO? Are you ready to buy shares on listing?
How Jio will become the second most valuable company
Jio IPO was launched at a price band of Rs 1,065 to Rs 1,119. If Jio’s shares are listed at the upper band of Rs 1,119, the market cap will be Rs 10.3 lakh crore. If the IPO is listed with a premium of 20%, Jio Platforms will be the second largest market cap company after Reliance Industries (RIL) with Rs 12.46 lakh crore. Bharti Airtel, which is competing with Jio in the telecom sector, is at second place with Rs 12,34,371 crore and HDFC Bank is at third place with Rs 10,49,086 crore.
(Disclaimer: The premium of the company’s shares keeps changing continuously in the gray market, so before betting on any IPO, make sure to have complete information about the company’s financial performance and its business or take advice from a financial advisor.
Source: www.livehindustan.com
