Meta- and Google-backed Jio Platforms’ shares soar over 21% on trading debut after record IPO
Jio's market capitalization reached 12.5 trillion rupees, making it India's second most valued company.
Quick Look
- Jio Platforms shares rose 21.5% on their trading debut Wednesday following India's largest-ever IPO, raising 302 billion rupees.
- The company reached a market capitalization of 12.5 trillion rupees, positioning it as India's second most valued firm.
AI-generated summary
Why It Matters
Jio Platforms offered 270 million shares in an IPO priced at 1,119 rupees apiece, raising 302 billion rupees.
Jio Platforms' shares rose 21.5% on their trading debut Wednesday after a record initial public offering that was lapped up by retail as well as institutional investors.
Jio's market capitalization was 12.5 trillion rupees ($131 billion), making it the second most valued company in India after its parent Reliance Industries, as per NSE data. This paves the way for its eventual inclusion in key benchmark indices.
That inclusion will generate sufficient demand and protect the share price from any oversupply, Deven Choksey, founder and managing director at wealth management firm DRChoksey FinServ, told CNBC.
He added that some of the investors who acquired a stake in Jio around 2021 may want to exit in around six months, by which time the stock will likely be included in the MSCI index and the Nifty 50 .
India's largest telecom and digital services player had offered 270 million shares in the IPO priced at 1,119 rupees apiece, raising 302 billion rupees ($3.2 billion) in the country's largest-ever IPO.
The public issue was subscribed more than 22 times, with institutional investors leading the demand, according to data from the BSE. The qualified institutional portion was subscribed 70.55 times, while retail investors subscribed 2.72 times.
The IPO was fully subscribed within 95 minutes of its opening on Oct. 21, Akash Ambani, managing director of Jio Platforms and heir of the Indian billionaire Mukesh Ambani, said ahead of the listing.
Global brokerage Nomura on Wednesday gave Jio Platforms a buy rating, setting a target price of 1,340 rupees, implying an upside of 19.7% to its IPO price. The brokerage said in a report that Jio's capex cycle is largely over and there is expected to be a sharp improvement in the company's free cash flow.
Shares were last trading at 1,360 rupees.
Indian billionaire Mukesh Ambani's flagship company, Reliance Industries, owns more than a 66% stake in Jio Platforms, followed by Meta Platforms' affiliate Jaadhu Holdings that owns nearly 10% and Google International, which owns 7.7%, as per LSEG data.
What to Watch
AI outlook — possibilities, not facts
Jio stock will be included in the MSCI index and the Nifty 50 in around six months.
Likely · Within months
Open Questions
- When will Jio be officially included in the MSCI and Nifty 50 indices?
- How will early investors navigate potential exits in six months?
