Reliance Jio IPO: The much-awaited mega issue Jio Platforms IPO is all set to open for subscription today, Wednesday, October 21 and will remain open until Friday, October 23. The shares are expected to list on the BSE and NSE on Wednesday, October 28. The allotment of shares of Jio Platforms IPO are likely to be finalised on Monday, October 26.
Jio Platforms has fixed its IPO price band at ₹1,065– ₹1,119 per share and is expected to raise approximately ₹30,213 crore through a fresh issue of 27 crore shares. At the upper end of the price band, the company’s valuation is estimated at around $108.3 billion.
The majority of the proceeds will be used to repay or prepay borrowings of Reliance Jio Infocomm, while the remaining amount will be allocated towards general corporate purposes.
Following the fresh share issue, Reliance Industries’ stake in Jio Platforms is expected to decrease from around 66.43% to approximately 64.4%. Despite the dilution, RIL will continue to retain majority ownership and control of its digital and telecom business.
Jio Platforms IPO GMP today
The Jio Platforms IPO is witnessing a strong grey market premium (GMP) ahead of the opening of its subscription window, indicating positive sentiment among grey market participants.
According to data from Investorgain, the IPO’s GMP stands at ₹273, signalling strong investor interest ahead of the issue opening on Wednesday.
An analysis of grey market trends over the past 18 sessions indicates an upward trajectory in the premium, suggesting expectations of a strong stock market debut. During this period, the GMP has fluctuated between ₹148 and ₹273, reflecting sustained optimism among grey market participants.
Jio Platforms IPO listing share price prediction
The latest grey market premium trend indicates that Jio Platforms shares could list at an estimated price of ₹1,392 apiece, representing a potential gain of 24.40% over the IPO’s upper price band of ₹1,119 per share.
Jio Platforms IPO review
Brokerage firm Motilal Oswal has recommended subscribing to the IPO for both listing gains and long-term investment, citing Jio’s market leadership, healthy earnings growth and future growth opportunities in broadband, enterprise technology and artificial intelligence (AI).
“For long-term investors, the key monitorables will be ARPU growth, tariff hikes and the monetisation of digital services,” the brokerage firm added.
Similarly, Shriram Finance has assigned a ‘Subscribe’ rating to the mega IPO for investors with a medium- to long-term investment horizon. The brokerage highlighted Jio’s strong market position, cash-generation capabilities and growth prospects, while flagging potential risks arising from regulatory requirements, competition, dependence on related parties and financial obligations.
“The company stands out as a core structural compounder for India’s digital economy, underpinned by robust cash generation, declining leverage as IPO proceeds are utilized to repay debt, and rapid adoption of home broadband services. Looking ahead, revenue and profitability are poised for sustained expansion driven by ongoing ARPU hikes, 2G-to-4G/5G subscriber migration, deepening enterprise relationships, and the potential export of its proprietary in-house tech stack to overseas operators. While regulatory and competitive risks remain, the structural health of the industry and the strength of an integrated digital ecosystem make this an attractive, high-conviction opportunity for medium to long-term investors,” the firm added.
Jio Platforms IPO details
Jio Platforms is targeting a valuation of up to ₹10.3 lakh crore through its initial public offering (IPO). The company plans to offer up to 27 crore shares in the price band of ₹1,065– ₹1,119 apiece, aiming to raise as much as ₹30,200 crore. According to Bloomberg calculations, the shares on offer account for around 2.9% of Jio’s post-issue equity capital.
Even at the lower end of the price band, the IPO is expected to raise approximately ₹28,700 crore, surpassing Hyundai Motor India Ltd.’s ₹27,800-crore public issue in October 2024, which currently holds the record as India’s largest IPO.
Company filings show that Jio has reserved shares worth up to ₹500 crore for eligible employees, who will receive a discount of around 5%. The offering also includes a shareholder reservation of up to ₹2,500 crore for eligible Reliance Industries shareholders.
Jio has appointed 19 banks to manage the IPO. The list includes Kotak Mahindra Capital Co., Morgan Stanley, Bank of America Corp., Axis Capital Ltd., BNP Paribas SA and Citigroup Inc.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
