Jio Platforms Soars 21.5% in Record Indian Market Debut

Jio Platforms shares climbed 21.5 percent on Wednesday, marking a powerful start for the company after a record-breaking initial public offering. The stock price jumped from the IPO price of 1,119 rupees to close near 1,360 rupees.

This surge placed the company's market capitalization at 12.5 trillion rupees, or approximately $131 billion. According to National Stock Exchange data, this valuation makes Jio the second most valuable company in India, trailing only its parent, Reliance Industries. The strong debut positions the firm for inclusion in major benchmark indices.

Deven Choksey, founder of DRChoksey FinServ, stated that index inclusion will create steady demand and protect share prices from oversupply. He noted that investors who bought stakes around 2021 may look to exit in about six months. By then, the stock is expected to be part of the MSCI index and the Nifty 50.

Jio, India's largest telecom and digital services provider, offered 270 million shares in the public issue. The company priced each share at 1,119 rupees, raising a total of 302 billion rupees, or $3.2 billion. This marks the largest IPO in Indian history.

Demand for the shares far outstripped supply. The BSE reported that the public issue was subscribed more than 22 times. Institutional investors led the buying, with the qualified institutional portion subscribed 70.55 times. Retail investors subscribed 2.72 times. Akash Ambani, managing director of Jio Platforms and son of Mukesh Ambani, said the IPO was fully subscribed within 95 minutes of opening on October 21.

Global brokerage Nomura issued a buy rating for the stock on Wednesday. The firm set a target price of 1,340 rupees, suggesting a 19.7 percent upside from the IPO price. Nomura's report indicated that Jio's capital expenditure cycle is nearly complete, leading to a sharp improvement in free cash flow.

Reliance Industries holds more than a 66 percent stake in Jio Platforms. Meta Platforms' affiliate Jaadhu Holdings owns nearly 10 percent, while Google International holds 7.7 percent, according to LSEG data. Major funds including BlackRock, Capital Group, and GIC participated in the anchor book. Including these anchor investors, the share offering generated $78 billion in demand.