Jio IPO draws 30 times anchor demand, brokerages see more upside in digital business

Jio Platforms' ₹30,213-crore initial public offering (IPO) has attracted strong institutional interest ahead of its October 21 opening. Anchor investor bids have crossed ₹2.5 lakh crore against ₹8,110 crore worth of shares available.

The anchor book was subscribed more than 30 times on Monday, indicating substantial demand from institutional investors ahead of what is set to be India's largest IPO.

The issue will open for public subscription on October 21 and close on October 23. The price band has been fixed at ₹1,065–₹1,119 per share, with listing scheduled for October 28.

Grey market premium at 22%

The IPO is also commanding a strong premium in the unofficial grey market.

According to India Infoline, Jio shares were trading at a grey market premium (GMP) of ₹252 on October 19, indicating a potential listing price of ₹1,371, or 22.52% above the upper price band.

The Economic Times separately reported a GMP of ₹251, suggesting a listing price of around ₹1,370.

However, grey market premiums are unofficial indicators of demand and do not guarantee listing gains.

Several brokerages have expressed confidence in Jio's earnings growth, market leadership and expansion beyond telecom services.

Emkay Global Financial Services described the IPO as "reasonably priced given the growth clocked in", citing compound annual growth of 16.2% in EBITDA and 18.4% in profit after tax between FY24 and FY26.

GEPL Capital recommended subscribing to the issue, saying its valuation of around 33.3 times FY26 earnings appeared fair given Jio's market position and growth potential.

PhilipCapital said Jio had "reshaped India's telecom landscape over the past decade through disruptive pricing and differentiated offering" since its launch in 2016.

The brokerage sees potential in the combination of tariff-led earnings growth, organic ARPU expansion and new digital-service revenue streams, which it said provides headroom for earnings to compound and makes the IPO valuation attractive on a forward-looking basis.

Jio's financial performance

Jio Platforms reported revenue of ₹1,46,885 crore in FY26, up 14.6% year-on-year, while profit after tax stood at approximately ₹30,049 crore. Its EBITDA margin improved to around 51.9%.

The company had 533.3 million customers as of June 30, 2026, and accounted for approximately 60% of India's wireless data traffic in FY26.

Jio also had 28.6 million fixed-broadband customers, including 14 million JioAirFiber subscribers, as of June 2026.

Where will the IPO proceeds go?

The IPO comprises 27 crore fresh shares. Jio plans to use ₹27,500 crore of the proceeds to prepay borrowings of its subsidiary Reliance Jio Infocomm.

SBICAPS said the debt repayment could reduce financing costs, improve cash flows and strengthen the company's ability to fund future investments.

Beyond telecom, brokerages see opportunities in Jio's 5G technology, artificial intelligence, cloud services and enterprise solutions.

Centrum Broking has estimated Jio Platforms' equity value at approximately ₹11.5 lakh crore and expects revenue to grow at a compound annual rate of around 14% between FY26 and FY29.

The IPO is being managed by 19 book-running lead managers, including Morgan Stanley, Goldman Sachs, JPMorgan, Kotak Mahindra Capital, ICICI Securities and SBI Capital Markets.