Jio IPO: Will India’s Biggest IPO Deliver Big Listing Gains? History Offers A Reality Check

Mumbai, September 8: Reliance Industries’ Jio Platforms is heading towards what could become India’s biggest-ever initial public offering, but the sheer size and marquee status of the issue may not necessarily translate into a blockbuster listing-day gain. With the Securities and Exchange Board of India (SEBI) having cleared Jio’s proposed Rs 37,700 crore issue, investor attention is now shifting from whether the IPO will be successful to how much upside it could offer when the shares begin trading.  

The question assumes greater significance as Jio prepares to begin investor outreach, with the company reportedly targeting a November listing. The proposed issue would surpass Hyundai Motor India’s Rs 27,859 crore IPO and become the largest public offering in the Indian market.  

But India’s experience with mega IPOs suggests investors should not automatically equate a large issue, a powerful brand and heavy demand with substantial listing-day gains. 

Big IPOs have delivered disappointing listing returns 

The historical record of India’s largest IPOs provides a useful reality check. LIC’s Rs 20,557 crore issue in 2022 and Paytm’s Rs 18,300 crore offering in 2021 attracted enormous investor attention, but neither delivered the kind of debut-day gains that investors might associate with a heavily anticipated listing, with both falling 9% each on debut.  

Hyundai Motor India’s IPO provides a more recent example. Despite being one of the country’s largest public issues, the stock made a muted debut in October 2024, listing at a 1% discount to its issue price.  

That history is particularly relevant for Jio. A massive issue can actually make a sharp listing pop harder to achieve because the company needs to absorb a much larger amount of capital and establish a valuation acceptable to a broad institutional investor base. 

Recent data also point to a more nuanced IPO market. While the BSE IPO index gained 35% during the first five months of FY27, reflecting strong performance from several newly listed companies, the broader market has also seen plenty of stocks struggle to sustain their initial valuations.  

Jio has a different fundamental story 

Jio, however, is not a typical mega IPO. 

Jio Platforms houses Reliance’s digital businesses and India’s largest telecom operator, giving the offering a combination of scale, consumer reach and established earnings that many earlier headline IPOs lacked. 

Jio Platforms reported a 12% year-on-year increase in revenue to Rs 45,961 crore in the June quarter, while segment EBITDA rose 15.1% to Rs 20,865 crore. Profit increased 9.2% to Rs 7,764 crore, while average revenue per user rose 3.3% to Rs 215.6.  

That means the Jio IPO story is not solely about its brand or Reliance parentage. Investors will also have to assess whether the company’s earnings growth can support the valuation assigned to it. 

The IPO is proposed as a fresh issue of up to 27 crore shares, with no offer-for-sale component, according to the company’s filings.  

The valuation will be the real test 

For investors, therefore, the key number may not be the IPO’s record-breaking size but the price at which Jio Platforms comes to the market. 

A highly attractive valuation could leave room for a strong debut if demand significantly exceeds the shares available. Conversely, an aggressive pricing strategy could limit the scope for a first-day rally even if the issue is heavily subscribed. 

This distinction matters because listing gains are determined by the gap between the IPO price and the price at which investors are willing to trade the stock once it becomes freely available on the exchanges. 

In other words, a great company can still be an expensive IPO. 

That is likely to be one of the central debates around Jio as its listing approaches. 

Jio vs NSE: Two marquee IPOs, different propositions 

Jio will also enter the market alongside another closely watched mega issue — the IPO of the National Stock Exchange. 

SEBI has approved NSE’s proposed Rs 30,000 crore IPO, which would make it India’s second-largest offering if Jio’s issue comes in at the proposed Rs 37,700 crore size.  

The contrast between the two could make the second half of 2026 particularly interesting for IPO investors. 

Jio offers exposure to India’s digital economy, telecom and consumer ecosystem, while NSE offers investors exposure to the country’s dominant equity and derivatives exchange. 

Both have exceptional brand recognition. Neither, however, is guaranteed to deliver outsized listing gains simply because of that recognition. 

Listing day may not tell the whole story 

For investors able to hold beyond the debut, the more important question could ultimately be what happens after listing. 

A 5% or 10% first-day gain may look attractive, but it matters little if the stock subsequently compounds earnings and expands its valuation over several years. Conversely, a muted listing does not necessarily make an IPO unattractive if the company’s fundamentals improve after it enters the public market. 

For Jio, investors will therefore need to track subscriber growth, ARPU, margins, 5G monetisation, digital services and the company’s ability to sustain earnings growth. 

The upcoming IPO could be India’s largest yet. Whether it becomes one of its biggest listing-day winners is a different question — and history suggests investors should not take that outcome for granted. 

Source: Filings with the regulator 

India’s Mega IPOs: Issue Size vs Listing-Day Performance 

Source

• NSE, company filings
• Proposed IPO size