The Jio Platforms IPO, worth Rs. 30,200 crore, is set to become India's largest public issue and has drawn positive assessments from several brokerages and market analysts. The issue opens Wednesday, October 21, and closes Friday, October 23. Analysts cite earnings growth, room for higher telecom tariffs and expanding digital services as reasons for their outlook. The offering carries a price band of Rs. 1,065 to Rs. 1,119 per share.
Potential tariff increases could lift subscriber revenue, according to analysts' outlook. The company plans to sell 27 crore new equity shares, making the offering entirely a fresh issue. Shares are due to list on the NSE and BSE on October 28.
Deven Choksey, managing director of DR Choksey FinServ, described the offering as a rare opportunity because of Jio Platforms' scale and growth prospects. He pointed to about Rs 76,000 crore in EBITDA last year and annual earnings growth of 18% to 20%. Choksey said such earnings scale and growth visibility are difficult to find together.
Choksey expects growth opportunities in enterprise services, home broadband, mobile connectivity and overseas markets. He also cited earnings visibility over four to five years as a factor in his assessment.
Choksey estimates that EBITDA could reach Rs. 1.5 lakh crore within four to four-and-a-half years if the company sustains growth near 20%.
He considers the proposed market capitalization of about Rs. 10 lakh crore relatively attractive. In his assessment, Jio Platforms could command a valuation of Rs. 12 lakh crore. He believes the offer price leaves some value for investors and may limit potential downside after listing.
Based on his growth assumptions, Choksey also sees the possibility of investors doubling their returns over four to five years. That projection depends on the company delivering the earnings expansion he expects.
The offer sets a minimum application lot at 12 shares. At the upper price limit of Rs. 1,119, one lot costs Rs. 13,428. The anchor investor book opens Monday, October 19, with further details expected later that day.
Jio Platforms has earmarked Rs. 2,500 crore worth of shares for eligible Reliance Industries shareholders. It has also set aside Rs. 500 crore worth of shares for eligible employees.
For the net issue, qualified institutional buyers will receive a 50% allocation. Retail investors account for 35%, while non-institutional investors have a 15% allocation.
The company expects to finalize the basis of allotment on Monday, October 26. Its planned stock market debut follows on Wednesday, October 28, subject to the announced schedule.
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Religare Broking assigned the offer a subscribe-for-long-term rating, citing revenue growth, improving profits and the company's digital infrastructure. It pointed to rising average revenue per user, or ARPU, as evidence of stronger subscriber monetization. Religare connected expanding margins with improved operating efficiency and higher revenue per user.
The brokerage also expects the customer base, higher data consumption and customer retention to support revenue growth. Meanwhile, opportunities in 5G and other digital services could provide further avenues for expansion.
Religare identified several risks, including dependence on licenses and spectrum approvals. It also cited potential approval delays, technological change and emerging competition.
In the unofficial grey market, the premium reached Rs. 250 to Rs. 255 per share on Monday. That compared with Rs. 235 to Rs. 240 over the weekend. At the upper offer price, Monday's premium implied a possible listing gain of roughly 22% to 23%.
The premium reflects informal market indications rather than an assured listing price. It offers a separate reference point alongside the formal issue terms and brokerages' longer-term growth estimates.
Jio Platforms' Rs. 30,200 crore IPO has attracted positive brokerage assessments based on earnings growth, digital expansion and its financial track record. The Rs. 250-255 grey market premium signals expectations of listing gains, although regulatory and competitive risks remain. The issue opens October 21, with trading scheduled to begin October 28.