Jio Platforms made a notable entry into the stock market on Wednesday, October 28, with its shares listing at Rs 1,359 each on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). This initial price represents a premium of 21.36 per cent over the initial public offering (IPO) price of Rs 1,119. Following this listing, Jio Platforms has secured its position as India’s second-largest publicly listed company by market capitalisation, marking a significant achievement for the nation’s stock market.

The public issue, valued at Rs 30,213 crore, saw an overwhelming response, being subscribed 21.36 times by the end of the bidding process on October 23. This high level of interest reflects robust demand from both institutional and retail investors. The portion allocated to qualified institutional buyers (QIBs), excluding anchor investors, was subscribed 67.15 times, while the non-institutional investor (NII) category was subscribed 13.99 times. Additionally, the retail segment received bids for 2.76 times the number of shares available.

The listing performance was largely in line with market expectations, as indicated by the unofficial grey market. The last reported grey market premium (GMP) for Jio Platforms was Rs 247, suggesting an indicative listing price of Rs 1,366 against the issue price of Rs 1,119. The actual listing at Rs 1,359 was close to this estimate, although it is important to note that GMP is an unofficial metric and does not guarantee future performance.

Growth Prospects Highlighted by Analysts

Nomura has expressed optimism regarding Jio Platforms’ growth potential, citing its leadership in wireless connectivity and opportunities in both home broadband and digital services. The brokerage notes that the significant investment cycle for 5G is largely behind the company, which has resulted in a decrease in capital expenditure from 35 per cent of revenue in FY25 to 23 per cent in FY26. This reduction is expected to enhance cash flow generation.

Furthermore, Jio’s net debt-to-equity ratio, including deferred payment obligations, has improved from 0.56 times in FY24 to 0.37 times in FY26. Analysts at Nomura anticipate that the company could achieve a net debt-free status by FY29. The brokerage also highlighted Jio’s substantial subscriber base, with a reported 41.7 per cent share of wireless subscribers, excluding machine-to-machine connections, as of August 2026, according to data from the Telecom Regulatory Authority of India (TRAI).

Data usage per subscriber was noted to be 27 per cent higher than that of Airtel, with a monthly churn rate of 1.6 per cent. Nomura predicts a potential industry-wide tariff increase of approximately 15 per cent in the November-December 2026 timeframe, which could serve as a short-term growth driver. In the long term, tiered pricing, premium 5G offerings, and network slicing may further enhance average revenue per user (ARPU).

Motilal Oswal Initiates Coverage with Positive Outlook

Motilal Oswal has commenced coverage on Jio Platforms with a Buy rating and a price target of Rs 1,350, indicating a potential upside of 21 per cent from the IPO price of Rs 1,119. The brokerage anticipates that Jio will strengthen its position in both wireless and home broadband markets while expanding its digital services across areas such as cloud computing, enterprise communications, the Internet of Things, and managed services.

Motilal Oswal projects that Jio’s revenue, reported EBITDA, and profit after tax will grow at compound annual growth rates of 14 per cent, 15 per cent, and 20 per cent, respectively, between FY26 and FY29. These projections take into account expected subscriber growth, a potential tariff increase of around 15 per cent from March 2027, and continued expansion in home broadband and digital services.

The brokerage estimates that rising profitability and controlled capital expenditure could lead to a cumulative free cash flow of Rs 1.46 lakh crore from FY26 to FY29, positioning Jio Platforms to achieve a net cash status by FY29. The price target is based on a discounted cash flow valuation using 11.5 times the estimated FY29 reported EBITDA. Motilal Oswal also sees the possibility of Jio Platforms trading at a premium to Bharti Airtel’s Indian operations, citing Jio’s market leadership and influence over industry tariffs.

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