Jio Platforms made a stellar entry into the stock market today, with its shares listing at Rs 1,358 on both the BSE and NSE. This represents a significant premium of 21.36% above its issue price of Rs 1,119. The highly anticipated listing was largely in line with market expectations, signaling strong investor confidence in the telecom major.
The impressive debut propelled Jio Platforms to become India's second-most valued company by market capitalization. At its listing price, the company achieved a market cap of Rs 12.50 lakh crore, successfully surpassing established players like Bharti Airtel Ltd and HDFC Bank Ltd.
India's Largest Primary Offering Sees Overwhelming Response
The initial public offering (IPO) for Jio Platforms was India's largest primary offering to date, entirely comprising a fresh share sale of 27 crore equity shares. The offering raised a substantial Rs 30,213 crore, with shares priced in the band of Rs 1,065-1,119 per share. Investors could bid for a lot size of 12 equity shares.
The IPO witnessed overwhelming demand, being subscribed a remarkable 22.19 times overall, attracting a record 1.4 crore applications. Different investor categories showed varying levels of enthusiasm:
- Qualified Institutional Bidders (QIBs): Subscribed 70.66 times.
- Non-Institutional Investors: Subscribed 14 times.
- Retail Investors: Subscribed 2.27 times.
- Shareholders and Employees: Booked 7.6 times and 2.93 times, respectively.
Brokerages Initiate Coverage with 'Buy' Ratings
Even prior to its formal listing, several prominent overseas and domestic brokerage firms had initiated coverage on Jio Platforms with optimistic outlooks. Nomura, an overseas brokerage, assigned a 'buy' rating with a target price of Rs 1,340, indicating a potential 20% upside from the IPO issue price. Nomura highlighted the stock's potential as a long-term value creator.
Motilal Oswal also commenced coverage with a 'buy' rating and a base-case target price of Rs 1,350 per share. In an even more bullish scenario, Motilal Oswal projected Jio Platforms' value could reach Rs 1,690, suggesting a substantial 51% upside. Elara Capital similarly initiated coverage with a 'buy' call, setting a target price of Rs 1,367, further solidifying the positive sentiment surrounding the telecom giant's market entry.