Jio Platform's Nifty entry could bring ₹36,500cr in passive buying
What's the story
Jio Platforms, India's second-most valuable company with a market capitalization of ₹13 lakh crore, may be added to the Nifty 50 index in September 2027. The BSE Sensex index could follow suit in December 2027. Once included in these indices, analysts estimate that passive funds could invest up to ₹36,500 crore in the stock. This would be 21% more than the amount raised during its IPO (₹30,213 crore).
Index dynamics
Nifty reshuffle schedule and current market cap
The Nifty 50 index is reshuffled twice a year, based on data from January 31 and July 31. The changes are then implemented in March and September.
As of October 29, Jio Platforms' total market capitalization stood at ₹13.1 lakh crore with a free-float market cap of ₹28,524 crore, according to the NSE.
Share distribution
Lock-in expiry in April 2027
During its listing process, Jio Platforms made 3% of its shares available for public trading.
Around 32.5% of the company's shareholding is under Foreign Direct Investment (FDI), due to long-term investments from Google, Meta, and General Atlantic, among others. However, this lock-in period will end by April 2027.
Mannat Gandhi of PL Capital suggests that April 2027 could be a crucial time for potential stake sales as around 299.78 crore pre-IPO shares will come out of lock-in.
Market strategy
Derivatives segment entry prerequisites
Only stocks in the derivatives segment can be added to the Nifty 50, meaning F&O contracts are traded on these counters.
Gandhi thinks Jio Platforms could enter this segment by June-July 2027. Given its market capitalization of over ₹13 lakh crore, it meets size-related parameters well.
"With its six-month trading history completing around April 2027, inclusion could follow in subsequent months," she said.