The Mukesh Ambani-led Reliance Jio Platforms officially listed on the Indian stock exchanges at 10:00am on October 28. The company’s blockbuster debut delighted investors, with a 21.28 per cent premium listing gain. The IPO raised approximately ₹30,213 crore, surpassing previous records like Hyundai Motor India.
With an initial buying price of ₹1,119, the stock opened at ₹1,358, offering investors a profit of ₹239 per share. The expected grey market premium (GMP) for the IPO was around ₹246 to ₹248 per share right before its listing.
Retail investors made a listing gain of ₹2,868 with a lot size of 12 shares, while shareholders made a profit of ₹5,497 with a lot size of 23 shares. The highest lot size of 180 shares for high net worth individuals made a listing gain of ₹43,020.
As of 10:40 am, the stock indicated no selling pressure on the BSE or NSE, trading flat at around ₹1,358. It remained relatively steady, with a high of ₹1,373 per share and settling at around ₹1,357.
With a 20 per cent price band, the upper limit is set at ₹1,629.55. The value-weighted average price is ₹1,358.65. It hit a total traded quantity (TTQ) of 98.14 lakh shares and a massive turnover of ₹1,340.38 crores.
Jio IPO received the highest-ever applications for any initial public offering in India, with investors subscribing more than 22 times by the end of the application window period.
Qualified Institutional Buyers (QIBs) bid 70.55 times, with 345.75 crore bids drawn against 4.9 crore shares offered. Non-Institutional Investors subscribed 14 times, with 51 crore bids drawn against 3.6 crore shares offered.
Competition in the future?
Several brokerages expect the stock to fare well in the future, but competition, heavy capital spending, and potential changes in India’s telecom regulations were flagged as challenges.
The telecom company has overtaken its major competitor, Bharti Airtel, which has a market capitalisation of ₹12,11,842 crore. Jio’s market capitalisation is ₹12,51,967 crore.
Airtel’s share price was down 1.81 per cent today, trading at around ₹1,942. Though the stock’s fall is partly driven by investor attention shifting to Jio’s IPO, recent plans to scale Airtel Money into a major financial services arm have raised questions regarding cash flow.
