Jio shares make blockbuster debut at over 21% premium over IPO price; analysts see 'long-term wealth creation'

Jio has now become one of India's ​biggest companies with a market capitalisation of Rs 12,50,586.39-crore. It is backed by Meta and Alphabet's Google, and serves more than ⁠530 million customers. The blockbuster listing also made Reliance Industries the most valuable conglomerate in the country. Jio has also overtaken Bharti Airtel in terms of market capitalisation to become the most valuable telecom company in the country.

Analysts were bullish on the shares of the digital services arm of Reliance Industries. Japanese brokerage Nomura has initiated coverage of Jio Platforms with a 'Buy' rating and a target price of Rs 1,340 per share, implying nearly 20 percent upside from the IPO price of Rs 1,119. The brokerage expects steady tariff hikes, home broadband growth, and improving free cash flow to support the telecom company's performance.

Nomura identified home broadband as Jio's second growth engine, supported by its extensive network infrastructure and market leadership. The brokerage also expects a sharp improvement in free cash flow (FCF) as capital expenditure intensity declines, with the bulk of Jio's 5G-related investments largely completed. According to Nomura, Jio's strong network and leading subscriber market share position the company for long-term value creation.

The domestic brokerage firm Motilal Oswal Financial Services has initiated coverage on Reliance Industries-backed Jio Platforms with a Buy rating and a target price of Rs 1,350 per share, implying 21 percent upside from its IPO issue price of Rs 1,119. The brokerage expects tariff hikes, strong subscriber additions, home broadband expansion and growing digital services to drive earnings growth over the next three years.

Mahesh M Ojha, Vice President of Research and Business Development at Kantilal Chhaganlal Securities, said: "The firm's robust compounding potential justifies a definitive buy-and-hold strategy for long-term wealth creation". The combined demand across the public issue and anchor investor placement for the record IPO exceeded Rs 7.4 lakh crore. The offering attracted nearly 1.39 crore applications.