Jio shares to list tomorrow: What current GMP indicates
What's the story
Jio Platforms, the telecom and digital services arm of Reliance Industries, is all set to make its stock market debut on Wednesday. The company's ₹30,213-crore initial public offering (IPO) was fully subscribed within 100 minutes of opening, making it the fastest fully subscribed public issue in Indian history. Market experts recommend that investors who secured allotments hold onto their positions to capitalize on long-term compound growth.
Analyst insights
Strong profitability and growth prospects justify valuation
Narendra Solanki, Head of Fundamental Research, Investment Services, at Anand Rathi Shares and Stock Brokers, said Jio Platforms' strong profitability, scalable technology platform, and growth prospects justify its valuation.
He also highlighted the company's dominant position in India's mobile broadband market with 533.3 million customers and a 49.8% share of the wireless broadband market.
However, he cautioned that telecom regulation, spectrum requirements, technological disruptions, and cybersecurity threats remain key concerns for the company.
Subscription details
Future growth driven by tariff hikes, data usage
The Jio Platforms IPO was subscribed 22.2 times by the end of bidding, with total demand exceeding ₹7.4 lakh crore.
Jio's homegrown technology stack, supported by 7,220 patent applications, has shielded the company from third-party vendor licensing costs and underpinned its strong 51.91% EBITDA margin, according to Mahesh M Ojha of Kantilal Chhaganlal Securities.
He also noted that future growth would be driven by tariff hikes, rising per-capita data usage, and expansion of fixed broadband services like JioFiber and JioAirFiber.
Listing expectations
Latest GMP suggests strong debut for Jio Platforms shares
Jio Platforms shares will be listed on the NSE and BSE on Wednesday at 10:00am.
The latest GMP of ₹248.5 suggests that Jio Platforms shares could have an indicative listing price of around ₹1,367.5 per share, which is 22.21% higher than the IPO price.
The ₹30,213-crore IPO was offered in a price band of ₹1,065-₹1,119 per share with a minimum application size of 12 shares.
The company plans to use up to ₹27,500 crore from the proceeds to repay borrowings.