Source : INDIA TODAY NEWS
Jio Platforms’ Rs 30,213-crore initial public offering (IPO) was fully subscribed in less than two hours of opening for public bidding on Wednesday, making it the fastest among India’s major IPOs to cross the milestone.
But with retail demand still subdued and the grey market premium easing, should investors apply for the issue?
The Jio Platforms IPO was subscribed 1.23 times overall by 11:14 am on October 21, according to the latest subscription data available. The qualified institutional buyers (QIB) category, excluding anchor investors, was subscribed 3.77 times, while the retail portion was subscribed 0.32 times and the non-institutional investor (NII) category 0.39 times.
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Investors had bid for around 24.24 crore shares against 19.75 crore shares on offer. The issue had received more than 12.74 lakh applications by the time of the update.
The strong opening makes Jio’s offering a standout among large Indian IPOs, which have often seen institutional investors wait until later in the subscription period before placing bids.
The National Stock Exchange of India’s IPO was only 42% subscribed on its first day, while Hyundai Motor India’s issue was subscribed 18% on Day 1, reported Reuters.
However, the strong overall demand for Jio Platforms has largely been driven by institutional investors so far. Retail investors have bid for around 2.73 crore shares against 8.50 crore shares reserved for them.
JIO IPO GMP TODAY
The grey market premium (GMP) for Jio Platforms stood at Rs 265 as of 10:37 am on October 21, according to the data provided. Against the upper end of the price band of Rs 1,119, this indicates an estimated listing price of Rs 1,384 and a potential premium of 23.68%.
The latest GMP is lower than the Rs 276 recorded earlier in the morning. The premium had stood at Rs 245 on October 19 and Rs 273 on October 20.
At the latest indicated premium, a retail investor applying for one lot of 12 shares could see an indicative gain of Rs 3,180 if the stock lists at Rs 1,384. This is only a grey market estimate and not a guaranteed return. GMP is unofficial and can change before listing.
JIO PLATFORMS IPO DETAILS
The IPO opened on October 21 and will close on October 23. The price band is Rs 1,065 to Rs 1,119 per share, and the issue comprises a fresh issue of 27 crore shares, with no offer for sale.
Retail investors must apply for a minimum lot of 12 shares, requiring an investment of Rs 13,428 at the upper end of the price band. The allotment is expected to be finalised on October 26, while the shares are scheduled to list on the NSE and BSE on October 28.
Jio Platforms has raised around Rs 8,110 crore from anchor investors. The anchor book attracted demand of approximately Rs 2.5 lakh crore, exceeding 30 times the amount on offer, according to the transaction figures shared earlier. Investors included global asset managers, sovereign wealth funds, domestic mutual funds and insurers.
The IPO values Jio Platforms at up to $108.3 billion. It is the first public issue from Reliance Industries in two decades, with the last IPO from the conglomerate dating back to 2006.
SHOULD YOU SUBSCRIBE TO JIO PLATFORMS IPO?
Religare Broking has recommended ‘Subscribe – Long Term’ for the Jio Platforms IPO, citing the company’s scale, financial performance and growth opportunities across 5G, digital services and enterprise technology.
In its IPO note dated October 19, the brokerage said India’s digital economy is projected to reach $1.4 trillion by FY31. It expects Jio Platforms to benefit from rising data consumption, broadband adoption, cloud migration, enterprise digitalisation and demand for AI-enabled services.
Jio Platforms served more than 53.3 crore customers as of June 2026, including over 28.5 crore 5G users. Its network coverage extended to more than 99% of India’s population, according to the brokerage note.
The company’s financial performance has also improved. Revenue from operations rose from Rs 1,09,558 crore in FY24 to Rs 1,46,885 crore in FY26. Earnings before interest, tax, depreciation and amortisation (EBITDA) increased from Rs 54,959 crore to Rs 76,255 crore, while profit after tax rose from Rs 21,423 crore to Rs 30,049 crore.
Its EBITDA margin reached 51.9% in FY26, while the profit after tax margin stood at 20.4%. Net leverage declined to 0.36 times, indicating a stronger balance sheet.
Religare’s valuation assessment is based on an estimated FY28 enterprise value-to-EBITDA multiple of 11.6 times. The brokerage believes the company’s operating performance, rising average revenue per user (ARPU), customer retention and opportunities in digital services support a long-term investment case.
Master Capital Services has also highlighted the growth potential of India’s digital economy and Jio Platforms’ presence across mobile connectivity, broadband, digital entertainment, cloud services and enterprise technology. The brokerage said the company could benefit from rising connectivity, broadband adoption and demand for AI-enabled services.
WHAT ARE THE RISKS?
Despite the growth outlook, investors should consider the risks before applying.
Religare Broking flagged Jio Platforms’ dependence on Reliance Jio Infocomm for a significant share of its consolidated revenue and profits. Any deterioration in the telecom subsidiary’s operating or financial performance could affect the parent company.
The brokerage also highlighted regulatory dependence on telecom licences and spectrum, competition from satellite-based broadband services, possible disruption involving telecom tower and optic fibre providers, and changes in net neutrality regulations.
Another factor is the concentration of revenue in telecom. Reuters reported that more than 90% of Jio Platforms’ revenue comes from its telecom business. This means the company’s performance remains closely linked to its core connectivity operations even as it expands into other digital services.
SHOULD YOU APPLY FOR LISTING GAINS?
The rapid subscription and strong institutional demand show considerable interest in the Jio Platforms IPO. However, the latest GMP has eased from its earlier level, while retail and NII participation remain below the shares reserved for them.
Investors considering the IPO for the long term can weigh Religare Broking’s positive recommendation against the company’s valuation and concentration risks. Those applying mainly for listing gains should be cautious: neither a fully subscribed issue nor a high grey market premium guarantees a strong listing.
The IPO remains open until October 23, giving investors time to review the company’s financials, business outlook and risks before making a decision.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)
– Ends
SOURCE :- TIMES OF INDIA
