Jio IPO listing today: Grey market signals Rs 248 premium, 22% upside

Jio Platforms is set to make its stock market debut on Wednesday with the grey market indicating a potential listing premium of around 22 per cent over the upper end of its initial public offering (IPO) price band. The company’s shares are scheduled to list on the National Stock Exchange (NSE) and BSE at 10 am.

The grey-market premium (GMP) stood at around Rs 248 per share ahead of the listing, implying a potential price of approximately Rs 1,367 against the IPO’s upper price band of Rs 1,119. The grey market is unofficial and unregulated, and its premium does not guarantee the actual listing price or subsequent returns.

The market debut follows an overwhelming response to Jio Platforms’ Rs 30,188-crore IPO, which was subscribed 22.19 times overall during its three-day subscription window from October 21 to October 23.

The issue attracted around 1.3 crore applications, while total demand, including the anchor investor portion, approached Rs 7.5 lakh crore, according to reports.

Jio IPO subscription: Institutional investors lead demand

Qualified institutional buyers (QIBs) drove demand for the issue, subscribing to their reserved portion 70.55 times. The non-institutional investor category was subscribed 14 times, while the retail investor portion received bids for 2.72 times the shares reserved for it.

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The portions reserved for employees and shareholders of Reliance Industries were subscribed around 2.93 times and 7.6 times, respectively.

The IPO was fully subscribed within the first 100 minutes of opening on October 21, with demand continuing to build over the three-day bidding period.

Jio Platforms priced the issue between Rs 1,065 and Rs 1,119 per share, valuing the company at approximately Rs 10.3 lakh crore, or around $108.3 billion, at the upper end of the price band.

The offering is India’s largest IPO by fundraising, surpassing Hyundai Motor India’s Rs 27,859-crore issue in 2024.

What brokerages expect from Jio Platforms shares

Brokerages have initiated coverage on Jio Platforms with positive recommendations, citing its leadership in India’s telecom market, opportunities in fixed broadband and the potential to expand digital services.

Nomura has assigned a ‘Buy’ rating with a target price of Rs 1,340 per share. Elara Capital has also recommended a ‘Buy’, with a target price of Rs 1,367. Motilal Oswal has set a target of Rs 1,350, also with a ‘Buy’ rating.

The targets imply potential gains of around 20-22 per cent from the IPO’s upper price band. However, brokerage targets are estimates and do not guarantee future share-price performance.

Nomura expects Jio Platforms’ earnings before interest, taxes, depreciation and amortisation (EBITDA) to grow at a compound annual growth rate of 13.5 per cent between FY26 and FY29. It has highlighted the company’s large subscriber base, its position in wireless services and the potential for improved free cash flow as capital expenditure moderates.

Motilal Oswal expects consolidated revenue to grow at a CAGR of 14 per cent over FY26-29, with reported EBITDA rising 15 per cent and profit after tax increasing 20 per cent over the same period.

The brokerage expects subscriber additions, potential tariff increases, growth in home broadband and the expansion of digital services to support earnings.

Elara Capital expects Jio Platforms’ revenue to grow at a CAGR of 13 per cent and EBITDA at 16 per cent between FY26 and FY29. It also sees scope for significant growth in fixed broadband, supported by JioFiber and JioAirFiber.

Why Jio’s next growth phase matters

Jio Platforms, the telecom and digital services business of Reliance Industries, has built a customer base of more than 530 million subscribers. Its next phase of growth is expected to depend on extracting more revenue from this base and expanding beyond mobile connectivity.

The company’s opportunities include home broadband, enterprise communications, cloud computing, artificial intelligence (AI), the Internet of Things (IoT) and other digital services.

Managing director Akash Ambani has identified technology, AI and cloud computing as important areas for future expansion. The company is also exploring satellite connectivity and next-generation 6G technology.

Jio Platforms reported revenue from operations of Rs 1.47 lakh crore in FY26, up 14.6 per cent from the previous year. EBITDA rose 18.8 per cent to Rs 76,255 crore, while net profit increased 15.1 per cent to Rs 30,049 crore. Its EBITDA margin stood at 51.9 per cent.

At the IPO’s upper price band, the company was valued at around 34.3 times its FY26 price-to-earnings ratio, according to brokerage estimates. Investors will assess whether its future earnings growth can justify this valuation.