Jio Platforms IPO closes today
What's the story
Jio Platforms' ₹30,213 crore initial public offering (IPO) will close today. The issue has drawn strong investor interest and the gray market suggests a potential listing gain of over 20%. The subscription data till yesterday showed that the IPO was subscribed 5.4 times by the end of Day 2. Qualified institutional buyers (QIBs), excluding anchor investors, have already subscribed their portion 12.87 times while non-institutional investors (NIIs) have subscribed to their portion 5.67 times.
Investor interest
Retail portion subscribed 1.55 times
The retail portion of the Jio Platforms IPO has been subscribed 1.55 times.
The gray market premium (GMP) stood at ₹240 per share as of this morning, which translates into a potential listing gain of around 21.45% for those allotted shares at the upper price band of ₹1,119.
However, it's important to note that GMP is an unofficial indicator and does not guarantee the price at which Jio Platforms shares will list.
Profit projection
Jio Platforms IPO has a lot size of 12 shares
The Jio Platforms IPO has a lot size of 12 shares. At the upper price band of ₹1,119, a retail investor needs ₹13,428 to apply for one lot.
If the stock lists at a 20% premium to the issue price, it would translate into a gross gain of around ₹2,685.60 for one lot of 12 shares.
The potential profit would increase with more lots allotted, but these are illustrative calculations and not assured returns.
Investment advice
Brokerages recommend subscribing to the issue
Brokerages have recommended subscribing to the Jio Platforms IPO for both listing gains and long-term investment.
Motilal Oswal Wealth Management cited the company's market leadership, earnings growth, improving average revenue per user (ARPU), and opportunities in broadband, enterprise technology and artificial intelligence (AI).
Geojit Investments also recommended subscribing for investors with a medium- to long-term investment horizon, citing the company's market position, cash flow generation and opportunities beyond telecom.
Company growth
Financial performance and valuation
At the upper price band of ₹1,119, Jio Platforms is valued at about ₹10.30 lakh crore after issue.
The company's financial performance has improved over the past two years with revenue from operations increasing from ₹1,09,558 crore in FY24 to ₹1,46,885 crore in FY26.
Profit after tax also rose from ₹21,423 crore to ₹30,049 crore during this period.