Jio Platforms shares: After 27% jump on IPO listing day, will Reliance group stock rise more today?
Jio Platforms shares will remain in focus on Thursday, October 29, after making a strong debut on the stock exchanges. The shares surged nearly 27% above their IPO price, while the combined trading turnover on the NSE and BSE crossed ₹26,500 crore.
Jio Platforms share price listed at ₹1,358, marking a premium of 21.36% over the issue price of ₹1,119. The stock extended its gains during the session to close at ₹1,419, up 26.81% from the IPO price. This translated into a gain of ₹300 per share for investors who were allotted shares at the upper end of the price band.
At the opening price, Jio Platforms commanded a market valuation of approximately ₹12.5 lakh crore, making it India's second-most valuable listed company and the country's largest listed telecom operator. Its market capitalisation climbed further to around ₹13.1 lakh crore by the end of the trading session.
Anuj Gupta, SEBI Registered Research Analyst, believes that the stock could potentially test the ₹2,000 level over the next year, although this remains a projection and is not guaranteed.
Gupta further recommended long-term investors to consider holding the stock while monitoring its financial performance and valuation, saying that Jio Platforms benefits from an established parent group, experienced management and a strong business position in India's telecom and digital services markets.
Meanwhile, Seema Srivastava, Senior Research Analyst at SMC Global Securities, believes that Jio's market dominance, high cash generation, and leadership in India's digital ecosystem provide unmatched business quality.
“However, after such an aggressive listing-day rally, short-term price action today is likely to face consolidation or profit-booking as tactical investors lock in quick gains. While long-term compounders may find strong underlying value, further immediate upside today will likely be constrained by its rich valuation, making a cooling-off period more probable before the next sustained leg up,” Srivasatava added.
On the other hand, brokerage firm Elara Securities has initiated coverage on the newly listed Jio Platforms share price with a ‘buy’ rating. The brokerage firm has given the target price of ₹1,367 per share, seeing an upside potential up to 22%.
“JPL has evolved from a telecom operator into a monetization-led digital platform. Backed by an integrated technology stack, Jio is building a scalable, differentiated digital infra ecosystem, with long-term earnings visibility. We expect a top-line CAGR of 13%, an EBITDA CAGR of 16%, and a PAT CAGR of 23% during FY26-29E. We initiate with a Buy rating and TP of INR 1,367 on 11.5x FY29E EV/EBITDA,” the firm said in a note.
The ₹30,188-crore public issue was subscribed 22.19 times, with total demand from the IPO and anchor investor placement exceeding ₹7.4 lakh crore. The offering received nearly 1.39 crore applications.
Jio Platforms fixed its IPO issue price at ₹1,119 per share, the upper end of the price band, valuing the company at approximately ₹10.3 lakh crore. Following its listing, the company is expected to rank among India's three largest listed companies by market capitalisation.
Vaamanaa covers business and stock market news. Started in 2020, she has been producing news on digital platforms for over 4.5 years now. She writes on markets, commodities, IPOs, and industry. She has worked for news channels like Jagran New Media and Business Insider India. You can reach out to her at vaamanaa.sethi@htdigital.in.
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