‘Ambani premium’ kicks in: Jio IPO grey market signals 16% listing upside ahead of mega launch

Reliance Jio Platforms’ much-anticipated initial public offering (IPO) is attracting strong investor interest ahead of its expected launch, with grey market premiums indicating a potential 15-16% upside over the reported upper price band.

Unofficial grey market prices are reportedly quoting at a premium of Rs 170-180 per share, according to analysts tracking the market. The company’s official price band is yet to be announced, with the red herring prospectus expected to be filed this week.

According to a Reuters report, Jio Platforms is likely to price its shares in the range of Rs 1,065 to Rs 1,119 apiece, valuing the company at around Rs 10.3 lakh crore, or $106 billion.

At the reported upper price of Rs 1,119, the current grey market premium suggests an indicative listing price of around Rs 1,289 to Rs 1,299, provided the trend continues.

However, grey market premiums are unofficial indicators and can fluctuate significantly. The final price band, lot size, institutional demand and anchor investor participation could influence market expectations once further details emerge.

Jio IPO could raise Rs 30,200 crore

At the upper end of the reported price range, the IPO is expected to raise around Rs 30,200 crore, potentially making it India’s largest public issue. It would surpass Hyundai Motor India’s $2.9 billion IPO in 2024.

Jio Platforms is expected to issue up to 27 crore fresh equity shares. The proposed offering does not include an offer-for-sale component, meaning existing shareholders are not expected to sell their shares as part of the IPO.

Reliance Industries holds a 66.43% stake in Jio Platforms, while Meta’s Jaadhu Holdings owns 9.98% and Google International holds 7.73%, according to the draft filing.

The draft papers indicate that up to Rs 27,500 crore of the net proceeds will be used to repay or prepay borrowings, primarily those linked to Reliance Jio Infocomm. The remaining proceeds will be allocated towards general corporate purposes.

Jio positions itself as a technology platform

Jio Platforms houses Reliance’s telecommunications and digital businesses, spanning mobile services, fixed broadband, cloud computing, entertainment, enterprise technology and artificial intelligence offerings. The company had nearly 52.4 crore subscribers as of March.

Ahead of the proposed listing, Jio has been positioning itself as a broader technology platform rather than merely a mobile services provider, seeking a valuation that reflects its expanding digital ecosystem.

The company has completed investor roadshows across the Americas, Europe and Southeast Asia, with Akash Ambani and Isha Ambani meeting prospective investors.

A successful listing would place Jio among India’s most valuable listed companies, alongside major players such as Reliance Industries, Bharti Airtel and HDFC Bank.

Brokerages differ on Jio’s valuation

Brokerage estimates suggest that Jio Platforms could command a valuation of around Rs 10 lakh crore or more, although assessments vary.

Motilal Oswal has estimated the company’s value at approximately Rs 11 lakh crore, broadly in line with its assessed valuation of Rs 11.2 lakh crore. At that level, Jio would trade at around 12 times its estimated FY28 enterprise value to earnings before interest, taxes, depreciation and amortisation (EV/EBITDA).

By comparison, Bharti Airtel’s India business, excluding Indus Towers, trades at around 10.3 times the same valuation metric, according to the brokerage’s assessment.

Nomura estimates Jio’s equity valuation at Rs 9.8 lakh crore to Rs 10.3 lakh crore based on the proposed price range. After accounting for net debt, spectrum liabilities and lease liabilities, the brokerage estimates its enterprise value at Rs 10.9 lakh crore to Rs 11.4 lakh crore.

This translates into an estimated 10.5 to 10.9 times FY28 EV/EBITDA, below Nomura’s target multiple of 12 times but still higher than Bharti Airtel’s implied valuation.

Market conditions in focus ahead of IPO

The proposed listing comes amid volatility in India’s secondary markets, with foreign investor selling, elevated crude oil prices and US bond yields weighing on emerging-market equities.

However, the primary market has remained active, supported by domestic liquidity and investor interest in large public offerings.

The grey market premium offers an early indication of sentiment surrounding Jio’s IPO, but it does not guarantee listing gains. Investors will be watching the final price band, institutional demand and valuation closely as the company moves towards its proposed market debut.