Jio Platforms IPO of Rs 30,213 crore has given a clear signal to Dalal Street on the very first day. The issue was fully subscribed within the first 100 minutes of opening on October 21, with Qualified Institutional Bidders (QIBs) bidding for more than 3 times their quota.
This strong response was preceded by massive oversubscription in the anchor book, live It raised about Rs 8,110 crore from anchor investors at the upper price of Rs 1,119 per share. According to reports, bids worth more than Rs 2.5 lakh crore came into the book, which is more than 30 times the amount offered.
Global names like Fidelity, Allianz, BlackRock and Abu Dhabi Investment Authority were involved, along with domestic mutual funds like SBI and HDFC.
Capital Group is also among the participants, which is considered a sign of confidence in Jio’s leadership and the entire Reliance ecosystem. Anchor demand is merely an indication of institutional interest and not a guarantee of listing performance.
Clean and growth-oriented structure
This IPO is 100 percent fresh issue, none of the initial investors, i.e. companies like Meta, Google and any member of the Ambani family is selling their shares. A major part of the amount of about Rs 27,500 crore will go to repay the debt of Reliance Jio Infocomm. This is expected to move the company towards a net-debt-free position and convert more of the earnings into free cash flow.
Pricing and Valuation
The price band is Rs 1,065 to Rs 1,119 per share, at the upper end Jio is at around 33 to 34 times FY26 earnings, while Bharti Airtel is at around 39 to 40 times. Uday Kotak, founder of Kotak Mahindra Bank, believes that it is difficult to find another example of a company like Jio and at the current price its shares are attractive for investment. According to him, the upper end of the price band is equal to 34 times of FY26, which is cheaper than 41 times of peer companies.
Several brokerages including MK, Motilal Oswal and Anand Rathi have recommended “Subscribe” or “Subscribe for long term” citing discount, market leadership and growth trajectory.
A grip that’s hard to beat
Jio has more than 533 million customers, handles more than 60 percent of the country’s data traffic and also has a major share in the broadband market. Its own 4G and 5G stack, nationwide coverage and rapidly growing fixed-wireless AirFiber base give it an edge that its competitors are finding difficult to match.
India’s digital decade
Analysts do not consider Jio as just a telecom operator. It is the main company providing affordable high-speed connectivity to crores of Indians. With the combination of scale, its technology and digital services, it is in a position to capture a larger share in India’s growing digital economy.
Unlocking value for RIL shareholders
Listing will make Jio’s value more transparent, which will Reliance Industries The long-standing holding-company discount on its shares may reduce. This IPO also has historical importance. This is the group’s first major listing in nearly two decades and is reminiscent of Dhirubhai Ambani’s public issue in 1977, which brought millions of Indians into the stock market. The group’s identity has been beneficial to long-term investors.
What will you keep an eye on?
The issue will remain open till October 23, bids from retail and non-institutional investors often increase near the close of the issue, so the final subscription picture is yet to be known. Before applying, please read the Red Herring Prospectus (RHP) and understand the risks. This article is for information only, not investment advice.
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Source: www.aajtak.in
