Jio IPO opens for subscription at ₹30,213 crore target

Reliance Jio is set to open its mega initial public offering for subscription on Wednesday, October 21, with shares expected to list on the BSE and NSE on October 28. The company has fixed the price band at ₹1,065–₹1,119 per share, targeting a total raise of approximately ₹30,213 crore through the issuance of 27 crore shares. According to the filing, the majority of the proceeds will be used to repay or prepay borrowings of Reliance Jio Infocomm, while the remaining amount is allocated for general corporate purposes. Following this fresh issue, Reliance Industries’ stake in Jio Platforms is projected to decline from around 66.43% to approximately 64.4%, though the parent company will retain majority ownership.

Grey Market Premium and Valuation

Investors are showing strong interest ahead of the subscription window, with the grey market premium (GMP) currently standing at ₹273 according to data from Investorgain. This premium has fluctuated between ₹148 and ₹273 over the past 18 sessions, indicating an upward trend in sentiment. Based on this trend, shares could list at an estimated ₹1,392 per share, representing a potential gain of 24.40% over the upper price band of ₹1,119. The IPO is expected to raise as much as ₹30,200 crore, with shares on offer accounting for around 2.9% of Jio’s post-issue equity capital. Bloomberg calculations place the company’s valuation at up to ₹10.3 lakh crore even at the lower end of the price band.

Comparing this offering to recent market records, the issue aims to surpass the Hyundai Motor India Ltd. public issue from October 2024, which currently holds the title for India’s largest IPO with a size of ₹27,800 crore. The company has reserved shares worth up to ₹500 crore for eligible employees, who will receive a discount of around 5%, and an additional ₹2,500 crore for eligible Reliance Industries shareholders. Jio has appointed 19 banks to manage the IPO. The list includes Kotak Mahindra Capital Co., Morgan Stanley, Bank of America Corp., Axis Capital Ltd., BNP Paribas SA and Citigroup Inc.

Brokerage Recommendations

Brokerage firms have issued varied recommendations for the offering. Motilal Oswal has recommended subscribing to the IPO for both listing gains and long-term investment, citing Jio’s market leadership, healthy earnings growth, and future growth opportunities in broadband, enterprise technology, and artificial intelligence. The brokerage noted that for long-term investors, key monitorables will include ARPU growth, tariff hikes, and the monetisation of digital services. Shriram Finance has also assigned a ‘Subscribe’ rating, highlighting Jio’s strong market position, cash-generation capabilities, and growth prospects. However, the firm flagged potential risks arising from regulatory requirements, competition, dependence on related parties, and financial obligations.

The firm described the company as a core structural compounder for India’s digital economy, underpinned by robust cash generation and the rapid adoption of home broadband services. It noted that revenue and profitability are poised for sustained expansion driven by ongoing ARPU hikes, 2G-to-4G/5G subscriber migration, and deepening enterprise relationships. While regulatory and competitive risks remain, the structural health of the industry and the strength of an integrated digital ecosystem make this an attractive, high-conviction opportunity for medium to long-term investors.