Global investment banking firm Nomura has initiated coverage on Jio Platforms Ltd. on the day of its listing on Wednesday, October 28, making it the first among the analyst community to initiate coverage on the telecom and digital services provider.
Nomura has initiated coverage on Jio Platforms with a “buy” recommendation and a price target of ₹1,340, which implies an upside potential of 20% from the upper end of the company’s price band of ₹1,119 per share.
Jio Platforms, once the disruptor in the telecom space, is now the leader, Nomura said in its note, citing the company’s reach to 42% of the country’s wireless subscribers, 60% of data traffic, and 43% of the home broadband market.
The listing of Jio Platforms will likely push the company to become the price setter within the segment, and also towards steady tariff hikes in the future, that its peers can follow, Nomura stated in its note.
Nomura anticipates Jio Platforms’ Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) to grow at a Compounded Annual Growth Rate (CAGR) of 13.5% over financial year 2026-2029.
Nomura believes that Jio Platforms’ strong network, coupled with the largest subscriber market share, will lead to long-term value creation for its shareholders.
The firm also said that the Home Broadband business is the second growth engine to leverage its network strength, adding that global technology licensing is a long-term growth optionality for the company.
As capex intensity is likely to fall, with majority of the 5G capex is largely over, Nomura is expecting a sharp free cash flow improvement for Jio Platforms going forward.
Record Breaking Demand For Jio Platforms IPO
Jio Platforms’ ₹30,213 crore fresh issue of equity shares received a very strong response from investors, with overall demand crossing the ₹7 lakh crore mark, reaching ₹7.4 lakh crore at the end of the three-day bidding process.
This includes a demand of ₹2.5 lakh crore from anchor investors, and another ₹4.9 lakh crore from public investors, led by Qualified Institutional Bidders (QIBs). Retail investors also placed bids worth ₹25,867 crore during the IPO.
Jio Platforms will be making its stock market debut on the bourses in Wednesday’s trading session.