Jio Platforms, the digital and telecommunications division of Reliance Industries, has set a price band of Rs 1,065 to Rs 1,119 per share for its upcoming initial public offering (IPO). This IPO is anticipated to be the largest in India’s history. The subscription period will commence on October 21 and conclude on October 23, 2026. The allotment of shares is expected to be finalised on October 26, with a tentative listing on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) scheduled for October 28.

The IPO will consist of 27 crore fresh shares, amounting to a total issue size of Rs 30,213 crore. Based on the upper price band of Rs 1,119, the minimum investment required for retail investors is Rs 13,428 for a lot of 12 shares. The offering is being managed by a consortium of investment banks, including Kotak Mahindra Capital as the book-running lead manager and KFin Technologies serving as the registrar.

Market analysts have noted that the IPO is poised to surpass Hyundai Motor India’s Rs 27,870 crore IPO, which is expected in 2024, thereby setting a new record for public offerings in India.

Grey Market Premium and Investor Sentiment

The grey market premium (GMP) for Jio Platforms indicates strong investor interest, with the latest figures showing a premium of Rs 223 per share as of 12:02 pm on October 15. This suggests an indicative listing price of Rs 1,342 at the upper end of the price band, translating to a potential gain of approximately 19.93%. However, it is important to note that the GMP is an unofficial measure of market sentiment and does not guarantee the actual listing price.

Other grey market trackers reported varying premiums earlier on the same day, highlighting the volatility of these unofficial quotes. Investors are advised to approach these figures with caution, as they can fluctuate significantly prior to the IPO opening, during the subscription period, and ahead of the listing.

Transactions in the grey market occur outside the regulated exchange framework, making it essential for investors to consider company fundamentals and market conditions when evaluating the IPO.

Company Performance and Future Prospects

Dr Ravi Singh, Chief Research Officer at Master Capital Services Ltd, emphasised the importance of assessing Jio Platforms as a long-term investment rather than merely a short-term trading opportunity. He projected that the company could achieve revenues of Rs 1.47 lakh crore by FY26, with an EBITDA of Rs 76,255 crore and a profit after tax of Rs 30,049 crore. The EBITDA margin is expected to rise from 52 per cent to 53.3 per cent in the first quarter of FY27.

Dr Singh noted that a significant portion of the IPO proceeds will be allocated to repaying Rs 27,500 crore of debt at Reliance Jio Infocomm Ltd. This move could lower interest expenses and enhance financial flexibility for future investments. Jio currently serves 533 million customers, with 285 million on 5G, and accounts for approximately 60 per cent of India’s wireless data traffic.

Despite these positive indicators, Dr Singh cautioned that risks such as regulatory changes, tariff decisions, and customer churn could impact performance. He highlighted the potential for growth in average revenue per user (ARPU), which currently stands at Rs 214, compared to Bharti Airtel’s Rs 257.

In addition to mobile connectivity, Jio Platforms is expanding into home broadband services and other digital offerings, including enterprise services and cloud computing. Investors will need to weigh these growth prospects against the company’s valuation and financial performance as the IPO approaches.

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