Jio IPO: Shares to be listed on October 28; what should investors who received an allotment do? Experts weigh in..
Shares of Reliance Industries’ subsidiary, Jio Platforms, are set to be listed on the NSE and BSE on October 28. The company’s IPO, valued at approximately ₹30,200 crore, received an overwhelming response from investors. Those who have been allotted shares are now keenly focused on the listing performance and potential gains. However, market experts suggest that instead of focusing solely on the gains expected on the listing day, investors should also consider the company’s long-term prospects.
According to experts, Jio’s strong foothold in digital services, its technological capabilities, and its potential to drive revenue growth make it a valuable prospect for long-term investment. The company also has significant growth opportunities in sectors such as Artificial Intelligence (AI), enterprise digital services, and fixed broadband. That said, it is essential to evaluate the company’s valuation and the risks associated with the telecom sector before investing.
IPO fully subscribed in 100 minutes
The Jio Platforms IPO was fully subscribed within just 100 minutes of opening—a remarkable feat that earned it a distinct place in the history of the Indian stock market. The portion reserved for Qualified Institutional Buyers (QIBs), worth approximately ₹5,500 crore, was fully subscribed within the first 10 minutes. By the time the bidding process concluded, the IPO had been subscribed 22.2 times. The total demand from the public issue and anchor investors exceeded ₹7.4 lakh crore. Based on the final issue price, the company’s market valuation is estimated at approximately ₹10.3 lakh crore.
Why is there a recommendation to hold Jio shares? According to a Moneycontrol report, Narendra Solanki, Head of Fundamental Research at Anand Rathi Shares and Stock Brokers, believes that Jio’s strong market position in digital services, robust earnings, and technical capacity could drive the company’s future growth. He suggested that investors who were allotted shares in the IPO might consider holding them from a long-term perspective. Solanki noted that Jio has approximately 533.3 million (53.33 crore) subscribers for its mobile broadband services, commanding a market share of nearly 49.8% in the wireless broadband segment. The company’s proprietary technology platform, extensive distribution network, and strong brand provide it with a competitive edge over its rivals.
However, based on the IPO issue price, the company’s price-to-earnings (P/E) ratio stands at 34.3x—calculated against projected earnings for the financial year 2026—while its enterprise value-to-EBITDA ratio is 14.8x. Given this, investors should carefully analyze the company’s valuation alongside its potential for future earnings growth.
Paresh Bhagat, Chairman of Mangal Keshav Financial Services, observed that Jio’s IPO received an excellent response from investors, with the issue being subscribed approximately 22.2 times. This reflects investor confidence in the company’s telecom business and its digital growth prospects. Nevertheless, at the upper end of the price band—₹1,119—the valuation appears quite high, with expectations for future earnings growth already largely factored in. Investors who participated solely for listing gains might consider booking some profit by selling a portion of their holdings once the shares begin trading. Conversely, long-term investors may choose to remain invested, banking on factors such as Jio’s strong standing in the telecom sector, rising average revenue per user (ARPU), potential monetization from 5G, and the continued expansion of its digital business. However, future returns will depend on the company’s earnings, its ability to generate cash, and the efficient deployment of capital.
Focus on Robust Earnings
Mahesh M. Ojha, Vice President of Research and Business Development at Kantilal Chhaganlal Securities, notes that Jio’s technical capacity is a major strength. The company holds over 7,220 patent applications. Possessing its own technology stack helps reduce reliance on third-party vendors and lowers associated costs.
According to Ojha, the company’s net leverage declined to 0.36x in the 2026 fiscal year. This indicates that the company has moved past its phase of heavy infrastructure investment and is now focusing on increasing free cash flow. Furthermore, an EBITDA margin of 51.91% reflects the company’s strong operational performance.
Growth Driven by AI and Broadband
Looking ahead, potential tariff hikes, an increase in data consumption per user, and the role of fixed broadband services—such as JioFiber and JioAirFiber—could be key drivers for Jio’s earnings growth. Additionally, expansion into AI and enterprise digital services may create new opportunities. Nevertheless, factors such as changes in telecom regulations, the need for spectrum acquisition, competition arising from new technologies, and cybersecurity risks could impact the company’s business.
Disclaimer: This content has been sourced and edited from News18 Hindi. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.
