Jio IPO GMP at 20%: Grey market signals Rs 220 premium as brokerages say subscribe

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ETMarkets.com

Jio Platforms IPO: Jio’s market leadership and digital growth prospects draw investor interest ahead of its mega IPO.

The IPO is priced at Rs 1,065 - Rs 1,119 a share and is scheduled to open on Oct. 21 and close on Oct. 23. At the upper price band, the grey market premium of Rs 220 implies an indicative listing price of about Rs 1,339.

The issue will comprise 27 crore shares and is entirely primary. Jio Platforms plans to use Rs 27,500 crore of the proceeds to repay or prepay borrowings. The post-issue market capitalisation is estimated at Rs 10.30 lakh crore on the upper band of the issue price.

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Jio Platforms IPO: Why Emkay is bullish

Emkay Global has recommended subscribing to the issue, pointing to Jio’s dominant position in India’s telecom market and its expanding presence in broadband, enterprise connectivity and digital services.

Through Reliance Jio Infocomm, Jio Platforms operates India’s largest telecom network. The company had 533.3 million customers as of June 2026, a 50% share of wireless broadband subscribers and a 42.6% share of fixed broadband.

Its network carries about 60% of India’s wireless data traffic, while the company has the largest 5G customer base outside China, according to Emkay.

The brokerage said Jio’s revenue grew at a 15.8% compound annual growth rate between FY24 and FY26. During the same period, EBITDA and profit after tax grew at 16.2% and 18.4%, respectively.

Jio’s average revenue per user increased from Rs 181.7 in FY24 to Rs 214 in FY26, while the company added 42.6 million subscribers.

“Given its market leadership, pricing power, growth levers and execution record, we recommend SUBSCRIBE,” Emkay said.

Multiple growth engines

Emkay expects Jio’s next phase of growth to be driven by several businesses rather than mobile connectivity alone.

The company plans to strengthen its mobility leadership through 5G adoption and the migration of users from 2G to 4G and 5G. It also sees home broadband as a major growth driver, while enterprise and small-business relationships are expected to deepen through managed services.

Jio also intends to offer its in-house technology stack to overseas telecom operators.

The IPO note said Jio Platforms’ broader digital-services ecosystem includes entertainment, cloud, gaming, smart-home, IoT, communication and artificial-intelligence-enabled platforms such as MyJio, JioTV+, JioSaavn, JioGames, JioAICloud, JioPC and JioBrain.

Its enterprise portfolio includes internet leased lines, MPLS, VPN, CPaaS, managed Wi-Fi, private 5G, SD-WAN, cloud, cybersecurity and managed network services.

Technology and 5G advantage

Jio operates a vertically integrated technology stack covering network infrastructure, device engineering, software, operating systems and digital applications.

As of the first quarter of FY27, it employed 12,477 people in digital product and technology development, representing about 45% of its workforce. Its technology investments include 6G research, cloud-native platforms, network automation and new digital services.

Jio and its subsidiaries had filed 7,220 patent applications as of the first quarter of FY27, including 2,655 in India and 4,565 overseas.

The company was the first operator in India to launch a standalone 5G network. It had 284.9 million 5G customers as of the first quarter of FY27, making it the third-largest 5G customer base globally, according to the IPO note.

Jio also holds India’s largest spectrum bank, with 26,800.8 MHz and an average remaining life of 16 years. Its portfolio includes nationwide 5G spectrum in the 700 MHz, 3,300 MHz and 26 GHz bands.

Jio Platforms generated Rs 77,556 crore in operating cash flow and Rs 43,301 crore in free cash flow in FY26. Its EBITDA rose from Rs 54,341 crore in FY24 to Rs 73,382 crore in FY26, while profit after tax increased from Rs 21,422 crore to Rs 30,064 crore. EBITDA margin improved to 50% in FY26 from 49.6% in FY24.

Emkay said cash generation should strengthen as the company’s 5G investment cycle winds down. The IPO note also said the repayment of Reliance Jio Infocomm’s borrowings is expected to lower leverage and finance costs, strengthen cash flows and provide financial flexibility for future investments.

Valuation and risks

At the upper price band, Emkay said Jio Platforms is valued at 31.7-33.3 times FY26 earnings and 15-15.6 times FY26 EBITDA.

SBI Securities valued the company at a post-issue FY26 price-to-earnings multiple of 34.4 times at the upper price band. It also estimated an enterprise value per subscriber of Rs 20,117.

The valuation reflects Jio’s scale, earnings growth, technology capabilities and long-term monetisation potential, according to the brokerage.

However, Emkay flagged several risks, including spectrum costs, regulatory changes, competitive pressure on ARPU and churn, dependence on Reliance Group entities, concentration among passive-infrastructure and equipment vendors, leverage and foreign-exchange exposure.

SBI Securities also highlighted Jio’s continuing capital expenditure requirements, dependence on infrastructure providers, cybersecurity and privacy risks, spectrum licence dependence and the possibility of network disruptions.