Jio Platforms’ IPO made a strong debut on the stock market on Wednesday, listing at ₹1,358 per share on BSE Sensex and NSE, representing a nearly 21% premium over the upper price band of ₹1,119. This gave investors an immediate profit of ₹239 per share. The key question now is whether shareholders should hold their shares or realize gains and exit.
Strong Market Reception and Listing Gains
Before listing, Jio’s grey market premium (GMP) stood at 22.16%, slightly higher than the 21.36% jump seen after market listing. The IPO received overwhelming investor support, being subscribed over 22 times. During the subscription period, it set multiple records, reflecting immense market enthusiasm.
Following the IPO launch, the share price surged quickly. Within five minutes of listing, the stock climbed further to ₹1,375, increasing investor profit to ₹256 per share. This early momentum showed strong buyer interest and market confidence in Jio Platforms.
Expert Views on Holding or Selling Shares
After the explosive listing, investors face the choice of either booking profits or remaining invested. Experts have varied opinions on the matter. International brokerage Nomura initiated coverage on Jio Platforms with a ‘Buy’ rating and a price target of ₹1,340. They believe the company has moved beyond rapid growth to a phase of boosting earnings from its large customer base.
- Nomura notes Jio holds around 42% of wireless customers, nearly 60% of data traffic, and 43% of the home broadband market in India.
- The company’s strong market position could pave the way for tariff hikes benefiting the telecom sector overall.
Domestic brokerage Motilal Oswal also issued a ‘Buy’ rating with a target price of ₹1,350. They credit Jio with transforming the Indian telecom sector by increasing data usage and changing competitive dynamics.
- Elara Capital recommended buying Jio shares with a target of ₹1,367.
- They describe Jio not merely as a telecom operator but as a digital services platform poised for new revenue opportunities through technology and digital infrastructure.
Jio Platforms currently serves over 500 million customers and boasts extensive telecom network strength. Expansion in home broadband, enterprise services, cloud computing, and AI sectors may provide additional growth avenues. Increases in average revenue per user (ARPU), broadband rollout, and digital platform earnings are expected to drive future growth.
Uday Patil, Executive Director at PL Capital, highlighted these prospects as key drivers of long-term value for investors.
The Record-Breaking IPO Size
The IPO, worth about ₹30,200 crore, stands as India’s largest public offering to date. It met enthusiastic investor demand, with full subscription achieved within 100 minutes. The portion reserved for Qualified Institutional Buyers (QIBs) was filled within the first 10 minutes of the subscription window. By the third day, the IPO had attracted a total subscription level of 22.2 times.
Disclaimer: The investment suggestions mentioned are from various analysts and brokerage firms and do not reflect NBT’s recommendations. Investors should consult certified experts before making decisions, as stock market conditions can change rapidly.
