Jio Platforms' shares rose 21.5% on their trading debut Wednesday after a record initial public offering that drew strong demand from both retail and institutional investors.
Jio's market capitalization reached 12.5 trillion rupees ($131 billion), making it the second most valued company in India after its parent, Reliance Industries, according to NSE data. The valuation paves the way for the company's eventual inclusion in key benchmark indices.
Deven Choksey, founder and managing director at wealth management firm DRChoksey FinServ, told CNBC that such index inclusion would generate sufficient demand and protect the share price from any oversupply. He added that some investors who acquired a stake in Jio around 2021 may seek to exit in around six months, by which time the stock will likely be included in the MSCI index and the Nifty 50.
IPO details
- India's largest telecom and digital services player offered 270 million shares at 1,119 rupees apiece, raising 302 billion rupees ($3.2 billion) in the country's largest-ever IPO.
- The public issue was subscribed more than 22 times, according to BSE data, with the qualified institutional portion subscribed 70.55 times and retail investors subscribing 2.72 times.
- The offering was fully subscribed within 95 minutes of opening on Oct. 21, said Akash Ambani, managing director of Jio Platforms and heir of Indian billionaire Mukesh Ambani.
- Including anchor investors, the share offering garnered demand of $78 billion.
