Jio Platforms IPO will open well, with demand far exceeding supply, Zerodha and True Beacon co-founder Nikhil Kamath said, pointing to strong investor interest in the country’s biggest public offering.
“If that is kind any kind of indication of how the IPO is going to turn out, I think the demand far outweighs the supply as it stands. So things are looking good. I think the IPO will open well, and as a company which has provided the rails for internet and many internet companies to thrive in India, it seems deserving in a way,” Kamath said.
Kamath’s investment platform, Rainmatter, participated in the IPO’s anchor book. He also sees potential for Jio’s internet infrastructure to benefit from wider artificial intelligence (AI) adoption, as rising usage could drive data demand and increase average revenue per user.
“We were trying to get ₹500 crore of exposure, and we have gotten ₹25 crore,” he said. His investment thesis rests partly on the expectation that growing AI adoption will drive greater demand for internet infrastructure and data networks.
Kamath said India’s startup ecosystem has benefited significantly from affordable internet access, alongside public digital infrastructure such as UPI and Aadhaar. “I think a lot of us owe some part of our success to internet being cheap in India, and Jio has played a significant part in making that happen,” he said.
He added that the next phase of AI growth will continue to rely on internet infrastructure. “The rails of the AI boom… is internet,” Kamath said. “If more people start using AI… ARPUs go up by virtue of that.”
Beyond Jio Platforms, Kamath said India’s IPO market has remained resilient even as broader equity markets have seen volatility. He believes attractive pricing has helped sustain investor interest.
“If the markets are not doing too well and IPOs are doing well at that time… people are leaving some on the table for retail to take advantage of,” he said.
On artificial intelligence, Kamath argued that value creation will increasingly shift toward companies that own local data and context rather than only large AI model developers.
He said open-source AI models could gain wider adoption over time, while businesses may choose to keep their proprietary data within their own ecosystems instead of contributing it to foreign AI platforms.
Kamath also cautioned that enthusiasm around global AI companies resembles previous market cycles where investors priced in optimistic long-term outcomes.
“It always feels like this time is different,” he said, referring to past market bubbles. While he hopes the current AI cycle develops differently, he added that current valuations appear worrying as investors are already pricing in execution many years into the future.
For the full interview, watch the accompanying video
Jio Platforms IPO: Why Nikhil Kamath sees an opportunity in AI-driven data demand
Catch all the latest updates from the stock market here
Catch all the latest updates from the Jio Platforms IPO here
Disclosure: Reliance Industries Ltd, which owns Jio, is the sole beneficiary of Independent Media Trust that controls Network18, the parent company of CNBCTV18.com.
NOTE TO READERS
Disclaimer: The views and tips expressed by investment experts on CNBCTV18.com are their own, not of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.