The strong market response to Jio Platforms’ IPO aligns with expectations of revenue expansion in the telecom sector, according to Mayuresh Joshi, Director of Research at MarketSmith India.
Joshi noted an Average Revenue Per User (ARPU) arbitrage gap of ₹48 to ₹50 between Bharti Airtel and Jio. “A large part of the expectation pool is that ARPU increases might happen specifically from Bharti’s side taking the lead,” Joshi explained. If Bharti’s ARPU exceeds ₹300 over the next few months, Reliance could leverage the arbitrage to increase its own ARPU by ₹15 to ₹20.
Beyond tariff adjustments, broadband base expansion presents significant opportunities for both operators. Capturing this market is expected to provide a substantial fillip to overall performance and earnings, including the wireless business.
The combination of these digital initiatives and current valuations justifies the robust IPO demand, which is already reflected in pre-market premiums. Consequently, Mayuresh Joshi maintains an optimistic outlook on both Jio and Bharti Airtel.
The initial public offering (IPO) of Jio Platforms attracted total demand of ₹3.2 lakh crore on its first day (October 21), driven by aggressive institutional bidding that saw the issue fully subscribed in less than 100 minutes. The total figure includes ₹70,000 crore in day-one bids and a ₹2.5 lakh crore anchor book, pushing the overall subscription to 3.2 times.
Qualified institutional buyers (QIBs) led the charge, oversubscribing their portion 9.4 times. Retail investors placed bids worth ₹6,900 crore, marking the highest day-one retail participation for any Indian IPO. The shareholder quota was booked nearly 1.5 times, while the employee portion saw 1.36 times subscription.
Jio Platforms IPO issue closes on Friday, October 23, with share allotment scheduled for October 26.
Shares will be credited to demat accounts on October 27, ahead of the listing on the National Stock Exchange (NSE) and BSE on October 28. Upon listing, the company is expected to rank among India’s top five most valuable listed enterprises by market capitalisation.
For the full interview, watch the accompanying video
Jio Platforms’ ARPU growth, broadband expansion to drive long-term value: Mayuresh Joshi
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