Jio Platforms share price climbs higher after strong stock market debut

Jio Platforms shares rose another 5% in intraday trade on Thursday, October 29, pushing total gains to about 33% above the initial public offering price in just two trading sessions. The stock hit an intraday high of ₹1,490, following a blockbuster first-day surge of nearly 27% on Wednesday to close at ₹1,468.80. The massive listing lifted the company's market valuation past ₹13.05 lakh crore, or around $137 billion, making it India's second-most valuable listed company behind parent Reliance Industries. Jio also overtook Bharti Airtel in market value, establishing its position in the telecom and digital services sector. The ₹30,213-crore IPO had originally priced shares at ₹1,119 apiece, opening at ₹1,358 on both the BSE and NSE for a 21% listing gain.

Expert Advice

Brokerages have initiated coverage with positive ratings and buy recommendations, pointing to Jio's large subscriber base, data traffic share, and broadband expansion. Nomura set a target price of ₹1,340 while Motilal Oswal Financial Services set a target of ₹1,350. Analysts noted that Jio holds about 42% of India's wireless subscribers, 60% of data traffic, and 43% of home broadband. However, Ravi Singh, Chief Research Officer at Master Capital Services, advised investors to look past short-term listing gains and focus on business performance. Singh recommended monitoring quarterly revenue, EBITDA margins, average revenue per user, and cash flows to judge long-term growth. Key risks mentioned by brokerages include potential delays in industry tariff hikes and rising costs for handsets and equipment.

Context

Stock market debuts of massive corporate entities often draw intense investor interest and high initial trading volumes. Evaluating a newly listed company typically requires looking at its underlying business fundamentals rather than just its opening-day price jump.