Jio shares rise 5% in second session, valuing it at 13.70 trillion rupees
Key Facts
Jio Platforms shares rose 5% in early trading on Thursday, October 29, surpassing a market value of 13.5 trillion rupees and reaching 13.70 trillion rupees at the session high, Business Standard reported. The move came on the company’s second day of trading after its listing on the Mumbai stock exchanges on Wednesday. Jio closed its listing day at 1,417.50 rupees on the NSE and 1,417.35 rupees on the BSE. The newspaper estimated its market value at about 13.05 trillion rupees at the close. Performance in the first and second sessions kept the company among India’s largest by market value.
The stock began trading at 1,358 rupees, a 21.36% premium to its offer price of 1,119 rupees, then ended its first day 26.7% above the offer price, according to Business Standard. That marked further gains beyond the listing premium, as the price moved from its opening trading level to a higher close on the same day. The initial public offering was valued at 30,213 crore rupees and was subscribed 22.19 times by the time it closed. The offering was fully subscribed within 100 minutes of opening on October 21. These figures put demand for the offering in context alongside the strong rally that preceded the second-session gains.
Jio’s listing also affected the ranking of India’s listed business groups. The combined market value of listed companies belonging to the Ambani group reached about 30.25 trillion rupees on Wednesday, compared with about 25.40 trillion rupees for Tata Group companies, according to Business Standard. This moved the Ambani group to the top of the ranking of listed business groups by market value. Reliance Industries, Jio’s parent, nevertheless remained India’s largest individual company, with a market value of 15.80 trillion rupees on October 29. The distinction between the group’s value and that of an individual company reflects Jio’s new position within Reliance’s structure.
IPO subscription figures showed a clear disparity among investor categories. The qualified institutional buyers’ portion was subscribed 70.55 times, compared with 14.09 times for the non-institutional investors’ portion and 2.72 times for the retail investors’ portion, according to Business Standard. Demand through the IPO and anchor investor allocations also exceeded 7.4 trillion rupees. This gives a picture of the breadth of interest in the offering, alongside the overall subscription rate of 22.19 times. The demand came before trading began and was followed by the stock rising above its offer price on listing.
In its coverage initiated on the listing day, Elara Capital estimated Jio’s revenue would grow at a compound annual growth rate of 13% between FY26 and FY29, EBITDA by 16%, and net profit by 23%. The research firm paired its estimates with a buy recommendation and a price target of 1,367 rupees per share. The target is below the stock’s listing-day close of 1,417.50 rupees on the NSE and 1,417.35 rupees on the BSE. These estimates and the recommendation remain attributable to Elara Capital, while Thursday’s session saw the market value reach 13.70 trillion rupees at the high. Reliance Industries is due to report results on October 30.