Jio Platforms Jumps 21.5% to ₹12.5 Trillion Value — SkimNews
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- Jio Platforms shares climbed 21.5% on Wednesday’s trading debut and were last trading at ₹1,360, putting market capitalization at ₹12.5 trillion ($131 billion), second only to Reliance Industries.
- Jio Platforms offered 270 million shares at ₹1,119 apiece, raising ₹302 billion ($3.2 billion) in India’s largest-ever IPO, with the public issue fully subscribed within 95 minutes of opening on Oct. 21.
- BlackRock, Capital Group and GIC joined the IPO’s anchor book, and the share offering attracted $78 billion in demand when those institutional allocations were included.
- BSE data showed the qualified institutional portion was subscribed 70.55 times, compared with 2.72 times by retail investors.
- Nomura gave Jio a buy rating with a ₹1,340 target price, implying 19.7% upside from the IPO price, and projected a sharp free-cash-flow improvement, saying the company’s capex cycle was largely over.
- Reliance Industries still owns more than 66% of Jio, with Meta Platforms affiliate Jaadhu Holdings at nearly 10% and Google International at 7.7%, according to LSEG.
- Deven Choksey said some 2021 investors may seek exits around six months from now, by which time Jio is likely to enter the MSCI and Nifty 50, generating enough demand to protect its price from oversupply.
Why it matters: Early Jio investors have a possible liquidity window at a ₹12.5 trillion valuation, with some 2021 shareholders weighing exits around six months from now. Deven Choksey says the stock is likely to join the MSCI and Nifty 50 around then, generating enough demand to protect the price from oversupply and making index timing central to the next trading phase.
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