Jio IPO On the first day, one can participate with just 13,428 rupees, but will it be able to narrow the revenue gap of 48 rupees with Airtel?
Ten years after triggering a telecom price war in India, Jio Platforms is today opening its IPO worth 302.13 billion rupees to the public. Large institutions have shown strong interest. On October 19th, institutional investors subscribed for more than 2.5 trillion rupees in the anchor placement, which was worth 810.985 billion rupees, exceeding the issuance size by over 30 times.
However, this pricing also reflects that the market has changed. Jio's valuation in this listing is lower than that of its closest competitor, Bharti Airtel.
Jio IPO Schedule
- Subscription starts: October 21st, Wednesday
- Subscription deadline: October 23rd, Friday
- Allocation result: Expected on Monday, October 26th.
- Listing: On Wednesday, October 28th, it was listed on BSE and NSE.
What is required for subscription?
- Price range: Rs. 1,065 to Rs. 1,119 per share (par value of Rs. 10)
- Minimum order quantity: 12 shares. Calculated based on the upper limit of the range, the minimum order amount is 13,428 rupees.
- Retail quota: At least 35% of the net issuance volume
- Reliance Shareholder Quota: Up to 250 billion rupees
- Employee quota: up to 50 billion rupees
All 2.7 billion shares issued this time are new shares, with no existing shareholders selling their shares. Reliance Industries will continue to hold a controlling stake. This is also the first IPO for the Reliance group in nearly 20 years.
Who are the buyers in the anchored allocation?
Anchor Book allocated 724 million shares to 212 investors at a price of Rs 1,119 per share. Some of the largest allotments included:
- Indian Life Insurance Company: Rs. 49.998 billion
- New World Fund Inc: 48.627 billion rupees
- Singapore government: S$34.093 billion
- SBI Focused Fund: 31.5 billion rupees
- BNP Paribas Financial Markets ( ODI ): 30.325 billion rupees
Domestic mutual funds account for 34.34% of the anchor book, with a value of 278.496 billion rupees. Global investors participating in this book also include BlackRock, Capital Group, Fidelity, T. Rowe Price, Schroders, JPMorgan Asset Management, Franklin Templeton, and Janus Henderson.
Jio IPO Today's grey market premium
On October 20th, the premium of Jio stock in the grey market was approximately 245 rupees. This means that its listing price could be close to 1,364 rupees per share, which is about 21.9% higher than the upper limit of the issue price range. The grey market price is not an official quote and may change before the listing.
Cheaper than Airtel
Calculated based on the upper limit of the issue price range, Jio is valued at approximately 10.3 trillion rupees, which is about 107 billion US dollars. The market value of Bharti Airtel is around 123 billion US dollars. Jio outperforms in almost all operational indicators, but Airtel generates higher revenue per customer:
- Average revenue per user (June quarter): Airtel is 264 rupees, and Jio is 216 rupees.
- EBITDA Profit margin: Airtel is 57.4%, Jio is 53.3%
- P/E ratio for the past 12 months: Airtel is close to 37 times, while Jio is 33.2 times.
According to data compiled by Bloomberg, Jio has lagged behind Airtel in per-user revenue for seven consecutive years. Airtel has shifted its focus to higher-paying customers since 2019, while Jio has continued to grow its user base.
Nomura's Bineet Banka and Abhishek Bhandari stated in a report on October 10 that after the listing of Jio, "it may be necessary to prove growth capability to the public shareholders."
Jio Financial Report Card
- FY26 Revenue: 1.46 trillion rupees, higher than 1.28 trillion rupees
- Net profit: 300.49 billion rupees, higher than 261.09 billion rupees.
- EBITDA: 762.55 billion rupees, higher than 641.7 billion rupees
- Net debt / EBITDA : FY26 is 0.36 times, lower than FY24's 0.88 times
Up to Rs 275 billion in funds raised will be used to repay the debts of Reliance Jio Infocomm. This will provide more investment space for Jio during the period when it is waiting for regulatory authorities to make a decision on its satellite application, which is related to Elon Musk's Starlink.
Akash Ambani What to bet on?
The Managing Director, Akash Ambani, stated that the next phase of growth for Jio will come from technology, artificial intelligence, and cloud computing. He said about PTI: "In Jio, there is no either/or situation: the network is our technology." He mentioned that in India, there are still approximately 260 million people using 2G phones, and only about 21% of households have access to fixed broadband.
When it comes to fees, Ambani stated that Jio “always” has the ability to raise prices, but their priority is to provide more services to customers.
Changes in Indian corporate rankings
Calculated based on the valuation of IPO, Jio will become India's fourth largest listed company, following Reliance Industries, Bharti Airtel, and HDFC Bank. According to data from ET Intelligence, the combined market value of the Reliance group will rise to approximately 28.5 trillion rupees. This will surpass Tata Group's 25.5 trillion rupees, making it India's most valuable business group.
CoinPedia Trust Explanation:CoinPedia has been providing accurate and timely updates on cryptocurrencies and blockchain since 2017. All content is created by its team of analysts and journalists and follows strict editorial guidelines based on E-E-A-T (experience, professionalism, authority, credibility). Each article is verified from reliable sources to ensure accuracy, transparency, and reliability. Its review policy guarantees an objective assessment when recommending exchanges, platforms, or tools. The website is committed to keeping all content related to cryptocurrencies and blockchain up-to-date in a timely manner, covering everything from startups to industry giants.
Investment Disclaimer:All views and opinions expressed in this text represent the author's perspective on the current market conditions. Before making any investment decisions, please conduct your own research. Neither the author nor the publisher assumes any responsibility for your financial choices.
Sponsorship and Advertising:Sponsored content and affiliate links may appear on the website. Advertisements will be clearly marked, and the editorial content is completely independent of advertising partners.
