Shares of Jio Platforms, set to make their highly anticipated debut later today, will be available under the Margin Trading Facility (MTF) from their first day of listing on October 28, NSE said in a circular.
The National Stock Exchange of India, in a circular dated October 27, confirmed that Jio Platforms' equity shares would be admitted to trading on the exchange's Capital Market segment from October 28. The exchange also classified the company under Group 1 securities.
Group 1 securities in MTF refer to a specific category of highly liquid, low-volatility stocks designated by the Securities and Exchange Board of India (SEBI) and stock exchanges such as NSE and BSE that are legally eligible for the MTF.
Jio Platforms shares are commanding a grey market premium (GMP) of around Rs 246-247 over the IPO price of Rs 1,119, indicating a potential listing price of Rs 1,365-1,366. At these levels, investors allotted one lot of 12 shares could see listing gains of around Rs 2,950.
The grey market premium points to strong investor interest ahead of the listing, although actual gains will depend on demand during the opening session. Grey market premiums are unofficial indicators and can fluctuate sharply before trading begins.
Jio Platforms' public issue, which opened on October 21 and closed on October 23, was subscribed 22.19 times. Qualified institutional buyers (QIBs) led the demand, subscribing to their allotted portion 70.55 times. The non-institutional investor category was subscribed 14 times, while the retail portion received 2.72 times subscription.
What analysts expect from Jio's listing
Analysts expect Jio's market leadership, subscriber base and expanding digital businesses to sustain investor interest beyond its market debut.
Uday Patil, Executive Director at PL Capital, described the listing as a milestone for India's capital markets, pointing to Jio's established telecom operations and growth opportunities in broadband, cloud computing and artificial intelligence.
"Jio has more than 500 million subscribers and a large telecom network, alongside broadband, enterprise technology, cloud and AI opportunities," Patil said.
He believes growth in average revenue per user (ARPU), home broadband adoption, enterprise services and the monetisation of digital platforms could support the company's future prospects.
"Execution will determine how much value these opportunities create," Patil said, adding that Jio presents a long-term investment opportunity.
Disclaimer: This article has been written by Veer Sharma, who is not a SEBI-registered Research Analyst or an Investment Adviser. Veer Sharma and his/her ‘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 disclaimers here.
