Reliance Jio IPO: GMP already seeing 'Ambani premium' ahead of record issue launch

Grey market trading in Reliance Jio Platforms has picked up days before the likely launch of India’s biggest IPO, with unofficial prices quoting around Rs 170-180 per share higher than the reported price band, according to analysts tracking the shadow market. According to traders, the premium implies a gain of about 15-16% over the likely upper end. The official price band has not yet been announced, and the red herring prospectus is likely to be filed this week.

Reuters reported that Jio Platforms is likely to price its shares at Rs 1,065-1,119 apiece, valuing the company at about Rs 10.3 lakh crore, or $106 billion. At the reported upper price of Rs 1,119, a grey market premium of Rs 170-180 would imply an informal listing expectation of around Rs 1,289-1,299 if the current trends sustain.

Grey market prices, however, are unofficial and can change quickly once the final price band, lot size, institutional demand and anchor book details are announced.


The early premium shows the kind of investor attention Jio is drawing even before the IPO formally opens. The issue is expected to raise about Rs 30,200 crore at the upper end of the reported price band, which would make it India’s biggest public issue, ahead of Hyundai Motor India’s $2.9 billion IPO in 2024.

Jio Platforms is expected to issue up to 27 crore fresh equity shares. The IPO does not have an offer-for-sale component, which means existing shareholders are not expected to sell shares in the offer. Reliance Industries holds 66.43% in Jio Platforms, while Meta’s Jaadhu Holdings owns 9.98% and Google International holds 7.73%, according to the draft filing. ETMarkets reported that existing investors are planning to increase the stake in the company

The draft papers showed that up to Rs 27,500 crore of the net proceeds will be used to repay or prepay borrowings, mainly linked to Reliance Jio Infocomm, with the balance for general corporate purposes. Jio Platforms houses Reliance’s telecom and digital businesses, including mobile services, fixed broadband, cloud, entertainment, enterprise technology and AI offerings. The company had nearly 52.4 crore subscribers as of March.

A successful listing would put Jio among India’s most valuable listed companies, behind Reliance Industries, Bharti Airtel and HDFC Bank.

The IPO is also being pitched as more than a telecom listing. Jio completed roadshows across the Americas, Europe and Southeast Asia, with Akash Ambani and Isha Ambani meeting investors. The company is being positioned as a technology platform rather than only a mobile operator, as it seeks a premium valuation for its digital ecosystem.

Eyes on Valuation

Motilal Oswal has estimated that Jio Platforms could be valued at about Rs 11 lakh crore, broadly in line with its assessed value of Rs 11.2 lakh crore. At that valuation, Jio would trade at about 12 times estimated FY28 EV/Ebitda, compared with around 10.3 times for Bharti Airtel’s India business, excluding Indus Towers.

Nomura estimates Jio IPO value at Rs 9.8 lakh crore to Rs 10.3 lakh crore at the proposed band. After adding net debt, spectrum liabilities and lease liabilities, Nomura pegs enterprise value at Rs 10.9 lakh crore to Rs 11.4 lakh crore, implying 10.5-10.9 times FY28 EV/Ebitda. That is below Nomura’s 12 times target multiple but still above Bharti Airtel’s implied valuation.

The timing of the IPO will also be watched closely. India’s secondary market has been volatile, with foreign investors selling, crude prices elevated and US bond yields keeping pressure on emerging-market equities. Yet the primary market has remained active, helped by large domestic liquidity and demand for marquee issues.

Disclosure: This article has been written by Podishetti Akash, who is not a SEBI-registered Research Analyst or an Investment Adviser. Podishetti Akash and his ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclosures here.