Jio debuts on D-Street: India’s biggest IPOs delivered negative returns over one
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Jio Platforms has marked a significant milestone by successfully launching its market debut following India’s largest initial public offering, valued at Rs 30,213-crore. While historical trends indicate that stocks often experience negative returns post-major IPOs, initial reports present an optimistic outlook for Jio, with projections suggesting potential for growth as the company aims to expand its technological footprint through cutting-edge innovations across diverse sectors.
Jio Platforms made its much-awaited market debut on Tuesday, capping India’s biggest-ever IPO and becoming the country’s second-most valuable listed company. However, history shows that the market has not been very favourable over a month for the stocks which debuted after concluding the country's biggest IPOs of the country.Jio’s Rs 30,213-crore maiden public issue broke several records, including the title of India’s largest-ever IPO by surpassing Hyundai Motor India’s Rs 27,870-crore offering in 2024. The issue set records across fundraising, anchor investor demand and applications, while attracting the highest qualified institutional buyer (QIB) subscription among India’s five largest IPOs.
Also read | LIVE updates on Jio's mega listing
Data compiled by ETMarkets shows that stocks listing after four of India’s biggest IPOs, before Jio's mega issue, have delivered negative returns over the month following their debut.
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The recently-listed National Stock Exchange (NSE) takes the third spot. The shares made their much-awaited market debut on September 24, listing at Rs 1,800 apiece on BSE. This marked a premium of less than 1% over the IPO price of Rs 1,785. The stock has overall fallen more than 3% from IPO price in a month since debut.
After concluding the fourth biggest IPO of India, LIC shares overall fell 8% from IPO price on listing day, and 31% in the month that followed in 2022. Paytm however tops the list in terms of worst returns over one month since listing. The stock dropped as much as 27% on the listing day itself and more than 39% in a month from the IPO price.
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What lies ahead for Jio Platforms shares?
Nomura initiated coverage on the shares of Jio Platforms with a ‘Buy’ rating and a target price of Rs 1,340, implying an upside of 20% from the issue price of Rs 1,119. Motilal Oswal started coverage with a Buy rating and a target price of Rs 1,350, an upside of 21% from current levels.
Elara Capital also initiated coverage of Jio Platforms with a Buy rating and a target price of Rs 1,367 per share. Speaking at Jio’s blockbuster listing on stock exchanges, Jio Platforms MD Akash Ambani said the company’s next phase would focus on “democratising every technology that can transform lives,” including AI, cloud, connected devices, connectivity from space and digital services yet to be imagined.
Also read | No. 2 on Day 1: How Jio Platforms broke India’s market cap hierarchy in debut trade
Disclaimer: This article has been written by Debaroti Adhikary, who is not a SEBI-registered Research Analyst or an Investment Adviser. Debaroti Adhikary 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.
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Figures reflect the source report and its stated period. This article is for information and is not investment advice.
