Even before the formal listing, overseas brokerage firm Nomura has initiated coverage on Jio Platforms with an 'buy' rating and a target price of Rs 1,340, implying a 20 per cent potential upside over IPO issue price of Rs 1,119 apiece. The foreign brokerage said the stock may become a long-term value creator.
Among other brokerages, Motilal Oswal has also initiated coverage with a 'buy' rating and a target price of Rs 1,350 per share in the base case. However, its bull case scenario pegs Jio Platforms value at Rs 1,690, suggesting a 51 per cent upside from its IPO price. Elara Capital also kicked-off the coverage on Jio Platforms with a 'buy' call and a target price of Rs 1,367.
Mumbai-based Jio Platforms raised Rs 30,213 crore through its primary stake sale, which was offered in the price band of Rs 1,065-1,119 per share, with a lot size of 12 equity shares and multiples thereof. The India's largest primary offering so far was entirely a fresh share sale of Rs 27 crore equity shares. The IPO was subscribed 22.19 times, with record 1.4 crore applications.
Of the different investor categories, the portion reserved for qualified institutional bidders was subscribed 70.66 times, while the non-institutional investors' portion was subscribed 14 times. The retail investors' allocation was subscribed 2.27 times. The shareholders and employees portion was booked 7.6 times and 2.93 times, respectively during the three-day bidding period.
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