Reliance Jio IPO review: Apply or not? Bid now or buy shares post NSE, BSE debut? Check GMP, listing price prediction
Reliance Jio IPO: The highly anticipated Jio Platforms IPO is all set to open for subscription tomorrow, Wednesday, October 21. The Mukesh Ambani-led company aims to raise ₹30,213 crore through the public offering.
The IPO will remain open for bidding until Friday, October 23, while the shares are expected to list on the BSE and NSE on Wednesday, October 28. The share allotment is likely to be finalised on October 26.
The Jio Platforms IPO is attracting a strong grey market premium (GMP) ahead of its subscription opening, according to market observers.
According to Investorgain data, the IPO's GMP at ₹245, indicating robust interest in the issue ahead of its launch on Wednesday.
An analysis of grey market trends over the past 17 sessions shows that the premium is moving upward, signalling expectations of a strong stock market debut. During this period, the GMP has ranged between ₹148 and ₹250, reflecting positive sentiment among grey market participants.
The latest GMP trend in the grey market suggested that the estimated listing price of Jio Platforms IPO is likely to be ₹1364, which is 21.89% higher than the IPO price of ₹1119.
Brokerage firm Motilal Oswal has recommended investors to ‘SUBSCRIBE for both listing gains and long term’, saying that the company offers a combination of market leadership, healthyearnings growth and future opportunities in broadband, enterprise technology and AI.
“For long-term investors, the key monitorables will be ARPU growth, tariff hikes and the monetisation of digital services,” the brokerage firm added.
Meanwhile, brokerage firm Shriram Finance has a similar view on the upcoming mega issue. The brokerage firm has given ‘subscribe’ rating for investors with a medium- to long-term investment horizon, citing Jio’s market leadership, cash generation and growth potential, while also highlighting risks relating to regulation, competition, related-party dependence 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.
The Jio Platforms IPO comprises an entirely fresh issue of 27 crore shares, aggregating to ₹30,213 crore. Each share has a face value of ₹10, with the price band fixed at ₹1,065– ₹1,119 per share. Retail investors can bid for a minimum of one lot of 12 shares, translating into a minimum investment of ₹13,428 at the upper end of the price band.
The public issue is set to overtake Hyundai Motor India's ₹27,800-crore IPO, launched in October 2024, to become India's largest-ever IPO by issue size. Backed by Reliance Industries, the telecom and digital services company plans to issue 27 crore new shares, equivalent to approximately 2.93% of its post-issue equity capital. The offering follows the recent listing of the National Stock Exchange (NSE).
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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HomeMarketsIPOReliance Jio IPO review: Apply or not? Bid now or buy shares post NSE, BSE debut? Check GMP, listing price prediction
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