Jio Platforms shares climbed 21.4% during their trading debut on Wednesday following a record-breaking initial public offering that drew heavy demand from both retail and institutional investors. The company, recognized as India’s largest telecom and digital services player, offered 270 million shares at an IPO price of 1,119 rupees apiece, successfully raising 302 billion rupees, or approximately $3.2 billion. The offering marks the largest-ever initial public offering in the country’s history.
Market data from the BSE showed that the public issue was subscribed more than 22 times over. Institutional investors drove the bulk of the demand, with the qualified institutional portion achieving a subscription rate of 70.55 times. Meanwhile, retail investors subscribed 2.72 times for their allocated portion.
Akash Ambani, managing director of Jio Platforms and heir to Indian billionaire Mukesh Ambani, noted ahead of the listing that the IPO achieved full subscription within just 95 minutes of opening on October 21.
Global brokerage Nomura responded to the debut on Wednesday by issuing a buy rating for Jio Platforms and establishing a target price of 1,340 rupees. That target suggested an upside of 19.7% compared to the initial IPO price. In its accompanying report, the brokerage noted that Jio’s capital expenditure cycle is largely concluded, which is expected to drive a sharp improvement in the company’s free cash flow.
During trading hours, shares were last changing hands at 1,357 rupees.
Reliance Industries, the flagship company of Indian billionaire Mukesh Ambani, maintains a controlling stake of more than 66% in Jio Platforms. Major international backers also hold substantial ownership positions, with Meta Platforms affiliate Jaadhu Holdings holding nearly 10% and Google International owning 7.7%, according to data from LSEG.
