Jio IPO surge helps Reliance topple Tata as most valuable conglomerate in India

Mumbai: Jio Platforms Ltd.'s blockbuster stock market debut has propelled the digital company as well as its parent Reliance Industries Ltd. into rarified air. It also helped Mukesh Ambani’s conglomerate topple Tata Group as India’s largest conglomerate by market capitalisation.

Jio’s shares rose as much as 23% on their first day of trading on Wednesday, giving the company a valuation of over ₹12.5 trillion. That pushed Reliance Group’s combined market cap past ₹30 trillion and surpassed Tata Group at ₹25 trillion, according to data compiled by Bloomberg News. Tata Group was at the top by market value for most part of the past decade.

Jio Platforms, which listed after India’s largest IPO, overtook rival Bharti Airtel Ltd. to become sixth-most valuable telecom firm globally. It’s now the No. 2 company in India by market cap, trailing only its parent, Reliance.

Jio Platforms listing: A break from the past

The listing was an emotional moment for Ambani, who rang the listing bell with four generations on stage spanning his mother to his grandchildren. The $3.1 billion Jio IPO was fully sold out in less than 100 minutes, subscribed 22 times and surged on debut, signaling that it’s on course to buck a poor track record for the country’s mega deals.

“Sometimes a big listing can alter the mood of the investing nation, and we all hope Jio does that to the Indian market,” said Shankar Sharma, founder of GQuant Investech.

Reliance’s shares have tumbled 25.4% this year while the benchmark NSE Nifty 50 has slipped almost 13.3%.

However, the newly-listed telecom giant will have to wait for months before it can be added to India’s headline stock indexes such as the Nifty 50. Bourses first need to launch derivatives products on the stock before it can become eligible for inclusion into the benchmark indexes.