Jio Platforms IPO: Allotment out; should you hold or book profit on listing? What GMP hints at

Investors allotted shares in Jio Platforms' record Rs 30,213 crore initial public offering (IPO) are watching the unofficial market for signs of a strong debut on October 28. Shares of billionaire Mukesh Ambani’s digital and telecommunications entity have maintained a grey-market premium of about 22 per cent for roughly 10 days, adding to expectations of allottees.

The sustained premium follows strong demand across investor categories, with the IPO attracting more than 4.9 lakh crore in bids and nearly 1.4 crore applications. The offering was subscribed over 22 times and fully covered within 100 minutes of opening last week, despite a sharp sell-off in Indian equities.

Investors who received their allotments on Tuesday are tracking grey-market premium (GMP) prices for clues about the stock’s possible listing-day performance. However, premiums are unregulated and do not guarantee the price at which shares will trade on the exchange, but they are widely followed in India as a measure of demand and listing sentiment.

Jio's core competitive advantage lies in a fully proprietary, in-house technology stack supported by 7,220 patent applications, which eliminates third-party vendor fees and secures an industry-leading EBITDA margin of 51.91 per cent, said Mahesh M Ojh, Vice President – Research at Kantilal Chhaganlal Securities.

"While regulatory shifts and next-generation capital requirements remain standard industry risks, Jio's market dominance creates an incredibly strong margin of safety. The expected 20-22 per cent listing gain offers an excellent immediate window for short-term traders, while the firm's robust compounding potential justifies a definitive buy-and-hold strategy for long-term wealth creation," he said.

Jio has so far defied the usual trend of grey-market premiums declining after an IPO closes, when the initial bidding rush fades and attention shifts to allotments and listing.  Qualified institutional buyers bid for 71 times the Jio shares reserved for them, while wealthy investors subscribed 14 times their allocation. The retail portion was covered 2.7 times.

If the grey-market pattern holds through the listing, Jio would become India’s second-most valuable company after parent Reliance Industries Ltd, pushing Bharti Airtel Ltd into third place. The allotments, subscription figures and steady unofficial premium have kept expectations of a strong debut elevated.

Jio Platforms is expected to see a good listing. Investors who receive allotment can consider booking partial profits if the stock lists at a significant premium, while long-term investors may hold based on their risk appetite, said Dr Ravi Singh, Chief Research Officer at Master Capital Services.

Fresh investors should avoid chasing the stock at expensive valuations on listing day. It is better to wait for price stabilisation and evaluate valuations, earnings growth and future business prospects before investing, he said.