Jio Platforms IPO fully subscribed within 100 minutes; QIB portion gets 3 times bids -
Jio IPO: Canara Bank Securities recommended 'Subscribe' to the issue from a long-term perspective, given the volume-led growth from mobility, homes, and MSMEs and ARPU upside from bundled media.
Jio Platforms Ltd's Rs 30,213 crore IPO, India's largest ever, was fully subscribed within the first 100 minutes of bidding on Day 1, led largely by qualified institutional buyers (QIBs), whose portion was subscribed 3.25 times. The IPO opened for subscription at 9 am today.
The issue received bids for 20,03,43,972 shares against the issue size of 19,75,25,934 shares. The QIB portion, whose demand usually comes on Day 3 of IPOs, was subscribed 2.9 times. This made Jio among the fastest-ever subscribed issues among big-ticket IPOs.
The quotas for non-institutional investors (NIIs), retail individual investors (RIIs) and employees were subscribed 26 per cent, 23 per cent and 57 per cent, respectively.
Jio Platforms offers an attractive opportunity to participate in India’s long-term digital and connectivity growth story, Systematix said.
While elevated capex requirements, competitive intensity, regulatory interventions and execution risks remain key monitorable, the company’s market leadership, robust profitability, strong cash-generation profile and multiple structural growth levers provide comfort on its long-term prospects, the brokerage added.
Based on its estimated FY28 EV/Ebitda multiple of 11.6 times, Religare Securities felt Jio Platforms offers attractive long-term growth prospects, supported by sustained revenue growth and improving profitability.
Jio's issue is priced a discount of 18 per cent to Bharti Airtel’s 40.71 times valuations. Jio's 12 times EV/Ebitda multiple is seen reasonable, given its higher market share, double-digit Ebitda growth rate, and dominant home broadband expansion. Systematix said Jio valuation is around 19 per cen discount to its valuation in consolidated RIL, which makes it attractive.
With the IPO sailing through, Jio is set to emerge as India’s fourth-most-valued listed company. At the upper end of the price band, the Mukesh Ambani-led company has an implied market capitalisation of Rs 10,30,490.55 crore, behind Bharti Airtel at Rs 11,68,689 crore and HDFC Bank Ltd at Rs 10,97,187.39 crore. Reliance Industries Ltd (RIL) would retain the No. 1 spot, with a market capitalisation of Rs 16,27,693 crore.
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