Investors considering investing in the Jio Platforms IPO have one last chance to apply on October 23rd. This offering is the largest in Indian history. By the second day of trading, it was subscribed 5.57 times. Investors can submit their application by 5:00 PM today, and UPI payment approval is available until 7:00 PM.
According to data from the morning of October 23rd, the IPO attracted applications for 112,20,21,276 shares worth approximately 1.25 lakh crore rupees. The Qualified Institutional Buyer (QIB) category was subscribed 13.29 times. The High Net-worth Individual (HNI) category attracted 6.32 times. Meanwhile, retail investors subscribed 1.60 times, existing shareholders subscribed 4.21 times, and Reliance employees subscribed 2.15 times.
Jio Platforms aims to raise 30,213 crore rupees through this IPO. The company set the price band for shares between 1,065 and 1,119 rupees per share. 270 million new equity shares are being issued as part of this offering. Investors can apply for a minimum of 12 shares and then bid in a 12-times multiple.
Many brokerage firms have expressed a positive view on the Jio Platforms IPO, citing the company's strong market position, business growth potential, and valuation. Nevertheless, amid a sluggish market, the grey market premium (GMP) is declining, and the expected listing gain is around 21%. It is important to remember that GMP is an unofficial indicator and does not guarantee profit upon listing on the stock market. At the upper listing price of 1,119 rupees, the market capitalization of Jio Platforms is estimated at approximately 10.30 lakh crore rupees.
However, a crucial question remains for investors: should they apply for short-term listing profits, or is it better to invest for the long term, considering Jio's business and future prospects? Harsh Soni, a SEBI-registered investment consultant and founder of Nyvo Money, believes that the decision to invest in the Jio Platforms IPO should not be based solely on potential listing-day gains. In his view, a one-day surge may depend on luck and market sentiment, whereas wealth is built through investments in a continuously growing business over the long term.
Jio Platforms holds a significant share in India's digital economy. According to the company's Red Herring Prospectus (RHP), its total customer base is 533.3 million, of which 284.9 million, or about 28.49 crore customers, use 5G services. The company accounts for approximately 60% of India's wireless data traffic.
The company's financial performance also demonstrates strength: revenue and profit have increased over two fiscal years. The average monthly revenue per user (ARPU) has also improved. Furthermore, the company is expanding its services in 5G networks, home broadband, and AI-based services, which could contribute to future revenue growth. However, investors should closely monitor how much the customer base and revenue per user will increase, how much additional revenue will be generated from data consumption, and how successfully the company can reduce debt in the coming years.
Alongside the growth potential, Jio faces certain challenges. The role of tariff hikes may be important for increasing company revenue, but expensive tariffs could also prompt customers to switch to competitors. Additionally, competition in the telecom sector, regulatory changes, and significant network expansion costs could negatively affect the company's performance. Another key metric is Return on Capital (ROC). This stood at 12.83% in FY24 but decreased to 10.76% in FY26. This means investors need to assess how efficiently the company utilizes the capital invested in its business.
Jio Platforms is among the major companies benefiting from the expansion of digital services in India. Investment consultant Harsh Soni suggests that investors confident in India's economic and digital growth may consider Jio Platforms as a long-term investment option. Thus, instead of selling shares for listing gains, holding a stake in the portfolio for a long period might prove profitable if the Jio Platforms IPO is listed.
Nevertheless, he also advised reading the IPO documents, understanding the valuation, and making a decision according to one's financial needs. Those planning long-term investment should only invest funds that will not be needed for the next five to ten years. Consulting a financial advisor as needed would also be beneficial.