Global Markets
Jio Platforms opens about 21% above its IPO price on debut, valuing Reliance's digital arm at roughly ₹12.5 lakh crore
India's largest IPO began trading at ₹1,358 against a ₹1,119 offer price, while Reliance Industries' own shares barely moved.
HedgeWeekly News Desk ·
Jio Platforms, the telecom and digital business of Reliance Industries, started trading in Mumbai on Wednesday at ₹1,358 a share, 21.35% above the ₹1,119 price set at the top of its ₹1,065 to ₹1,119 range. The stock touched ₹1,374 in early dealing and was changing hands near ₹1,357 shortly after 10 a.m. India time, according to exchange data cited by ANI and HDFC Sky.
At that level the company carries a market value of about ₹12.5 lakh crore, ANI reported. The offer, worth about ₹30,213 crore, consisted solely of 27 crore new shares, so no existing investor sold. It closed on October 23 with bids for 22.19 times the stock available, led by qualified institutions at 70.55 times their allocation, against 2.72 times in the retail tranche.
Reliance, which owns 64.48% of Jio Platforms, traded at ₹1,197 around 9:59 a.m., up just 0.07% on the previous close of ₹1,196.20. At the top of the IPO range the unit had been valued at roughly $108.3 billion, a figure the opening price has now moved past.
Why it matters: Investors now have a daily market price for a business that was previously valued only inside Reliance, and Reliance's flat reaction suggests the market had already priced much of Jio's worth into the parent. At the debut valuation, Reliance's 64.48% stake is worth roughly ₹8 lakh crore, a reference point for any debate over a holding-company discount. With institutions taking the bulk of the book, how far funds add to or trim positions in the coming sessions, and how the stock holds up while Indian benchmarks remain under pressure, will show whether demand for large Indian listings extends beyond the IPO itself.