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Jio Platforms lists at ₹1,358, a 21% premium, and becomes India's second most valuable company
Shares of Reliance's digital arm closed their first day near the high after India's biggest IPO, overtaking Bharti Airtel and HDFC Bank in market value.
Key points
- Jio Platforms opened at ₹1,358, a 21.36% premium to its ₹1,119 issue price.
- The shares closed near ₹1,418, giving the company a value of about ₹13 lakh crore.
- The ₹30,213 crore issue had been subscribed 22.19 times.
Jio Platforms, the digital and telecom arm of Reliance Industries, made a strong start on the stock market on Wednesday. Its shares opened at ₹1,358, a premium of 21.36% to the ₹1,119 issue price, and kept climbing even as the wider market slipped.
At its high the stock was up about 27%. It closed near ₹1,418, close to the day’s best level, valuing the company at about ₹13 lakh crore, or roughly $137 billion. That made Jio India’s second most valuable listed company, behind its parent Reliance, and moved it past Bharti Airtel and HDFC Bank.
The listing caps India’s biggest share sale so far. The ₹30,213 crore issue drew bids for 22.19 times the shares on offer. Jio plans to use up to $2.89 billion of the money raised to repay borrowings of its telecom unit, which serves more than 53 crore customers.
At the ceremony, managing director Akash Ambani touched his parents’ feet before he spoke. Mukesh Ambani, sitting in the audience, was visibly emotional. With Jio’s value added in, the Reliance group overtook the Tata Group as India’s most valuable business house.
Market watchers said the price now carried high hopes. “The IPO price offered a valuation entry point; the listing price reflects a much greater degree of optimism,” said Aishvarya Dadheech, founder of Fident Asset Management.
Kranthi Bathini, equity strategist at WealthMills Securities, said: “Jio has had a strong debut even despite geopolitical issues and turbulent market conditions.” He said revenue and earnings would drive the stock from here. Several brokerages pointed to competition, heavy capital spending and changes in telecom rules on spectrum, licences and fees as risks.
The debut came on a soft day for Dalal Street, with the Nifty 50 ending 0.22% lower at 22,698.85.