Jio Platforms has emerged as India’s second-most valuable firm, with a market capitalisation of Rs 12.50 lakh crore following its stock market debut on October 28. Jio Platforms has seen a 21.36% premium on both BSE and NSE after its listing at Rs 1,358 compared to the issue price of Rs 1,119.

Key Highlights

• Jio Platforms debuted at Rs 1,358 per share, delivering a 21.36% premium over its IPO issue price of Rs 1,119.
• Jio Platforms has become India's second-largest valued listed company with Rs 12.5 lakh crore valuation, ahead of Bharti Airtel.

The listing increased Jio Platforms market capitalisation to Rs 13.46 lakh crore, ahead of Bharti Airtel, which had a market cap of Rs 12.08 lakh crore. Reliance Industries continued to outperform Jio Platforms with a market capitalisation of around Rs 16.15 lakh crore at the time of this writing.

The first event also made India's ranking in the corporate valuation list, a first. Jio Platforms' market capitalisation is a part of the group's listed market valuation, which has surpassed Tata Group's to become the most valuable in India with a combined market cap of over Rs 28 lakh crore, from around Rs 26 lakh crore.

Jio Platforms Listing Pushes Reliance Group Ahead of Tata Group

Prior to the listing of Jio Platforms the Reliance Group had 12 listed companies with a combined market cap of over Rs 18 lakh crore. The largest market value of the group was at Rs 16.15 lakh crore for Reliance Industries followed by Jio Financial Services at Rs 1.35 lakh crore.

With the stock market listing of Jio Platforms, the company has further expanded its presence in India's corporate valuation portfolio with a new major business.

The Adani Group was third with a market cap of over Rs 17 lakh crore. The fourth largest group was the HDFC group with a market value of almost Rs 14 lakh crore. HDFC Bank, with a market cap of Rs 10.67 lakh crore as of October 23, was the largest contributor to the HDFC Group's market cap.

The rankings are based on the market values as reported around the listing and can change as share prices fluctuate.

Jio Platforms Market Capitalisation Reaches Rs 12.50 Lakh Crore

Jio Platforms shares listed at Rs 1,358 on both the BSE and NSE, delivering a 21.36% premium over the issue price of Rs 1,119. At the listing price, the company’s market capitalisation stood at Rs 12.50 lakh crore, placing it ahead of Bharti Airtel in the telecom sector’s valuation rankings.

Meanwhile, Reliance Industries shares were trading 0.46% lower at Rs 1,194.50 on the BSE at the time of reporting, valuing the company at Rs 16.15 lakh crore.

The contrasting share-price movements underline that Jio Platforms’ listing and Reliance Industries’ market performance are separate developments, even as both contribute to the wider Reliance Group’s valuation.

Jio Platforms IPO Becomes India’s Largest Public Issue

Rs 30,213-crore Jio Platforms IPO becomes the biggest IPO by issue size in India in 2024, exceeding Hyundai Motor India's Rs 27,870-crore offering.

The public issue was open for 3 days from 21st October till 23rd October and the overall subscription achieved was 22.19 times. According to the figures released, the number of investors willing to put their money into the shares was 438.26 crore compared with 19.75 crore shares available for them.

Around 1.37 crore applications were received for the IPO which made it the first Indian public issue to receive over one-crore applications. With anchor investor demand added in, the combined bids, estimated at Rs 7.4 lakh crore, were around Rs 7.4 lakh crore.

Strong Institutional Demand Drives Jio Platforms IPO Subscription

The most significant source of demand was qualified institutional buyers (QIBs). They bid for 345.76 crores of shares with 4.90 crores of shares being reserved for the category other than anchor investors. This was a 70.55 times subscription.

Despite volatility in the secondary market and foreign portfolio investors (FPIs) selling, the strong institutional response was noted.

Jio Platforms plans to use Rs 27,500 crore from the fresh issue proceeds to repay borrowings of its subsidiary, Reliance Jio Infocomm. The repayment is anticipated to bolster the company's balance sheet in preparation for the expansion in its telecom and digital businesses.

Also Read: Jio Platforms IPO Day 3: Issue Subscribed 6.34x on Strong Demand

What Jio Platforms’ Listing Means for India’s Corporate Rankings

Jio Platforms' market entry has impacted the valuations of top listed companies and conglomerates. It has a market capitalisation of Rs 12.50 lakh crore, which put it ahead of Bharti Airtel, and if added to the market value of the Reliance Group, it helped the group clear Tata Group.

But market capitalisation is not a set indicator of operational performance. They fluctuate based on share prices and are not the same as revenue, profitability and other business fundamentals. Investors following the companies will have to evaluate the future financial statements and market fluctuations to gauge if these valuations are maintained.