Meta-backed Jio Platforms has made a powerful stock market debut, with its shares jumping 21.5 per cent after India’s largest-ever initial public offering raised $3.2 billion and attracted investor demand worth $78 billion.
The strong opening on Wednesday valued the telecommunications and digital services company at approximately $131 billion, placing it among India’s most valuable businesses and highlighting investors’ appetite for large technology-driven enterprises.
Jio Platforms recorded a market capitalisation of 12.5 trillion rupees, according to data from the National Stock Exchange, making it India’s second-most valuable company after its parent, Reliance Industries.
The company raised 302 billion rupees, equivalent to $3.2 billion, through the sale of 270 million shares priced at 1,119 rupees each. Its stock subsequently climbed to 1,360 rupees and delivered a substantial premium to investors who bought at the offering price.
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Institutional investors drive demand
The IPO attracted subscriptions exceeding 22 times the shares available, with institutional investors accounting for the strongest demand.
Data from the Bombay Stock Exchange showed that the qualified institutional investor allocation was subscribed 70.55 times, while retail investors subscribed 2.72 times their allotted portion.
Jio Platforms Managing Director Akash Ambani said the offer was fully subscribed within 95 minutes of opening on October 21.
Including anchor investors, total demand reached $78 billion, underlining the scale of interest in the business. Anchor investors are major institutions allocated shares before public bidding begins.
Reliance Industries, controlled by billionaire Mukesh Ambani, owns more than 66 per cent of Jio Platforms. Meta Platforms’ affiliate, Jaadhu Holdings, holds nearly 10 per cent, while Google International owns 7.7 per cent, according to LSEG data.
Global investment firms, including BlackRock, Capital Group and Singapore’s GIC, also participated in the anchor investor offering.
A strong debut does not guarantee lasting gains
The immediate challenge is whether Jio can translate investor enthusiasm into sustained financial performance. A sharp opening-day rise reflects demand for the shares, but it does not by itself establish whether the company’s valuation is justified over the long term.
Nomura assigned Jio a buy rating with a target price of 1,340 rupees, implying potential upside of 19.7 per cent against the IPO price. However, the shares had already risen to 1,360 rupees, exceeding the brokerage’s target.
Nomura said Jio’s capital expenditure cycle was largely complete and forecast a sharp improvement in free cash flow. Stronger cash generation could give the company greater flexibility to fund expansion, strengthen its finances or return money to investors.
Potential inclusion in major stock market indices, including MSCI benchmarks and India’s Nifty 50, could also attract additional investment.
Wealth management executive Deven Choksey told CNBC that index inclusion could help absorb selling pressure. However, some existing investors may seek to sell their holdings, potentially limiting further gains.
Jio’s record debut has secured a landmark fundraising result. Its next test is to demonstrate that its earnings and cash generation can support the market value investors have assigned to it.
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