Should you invest in Reliance Jio IPO?:’Don’t expect high listing gains’; common man to make money in long term?

Reliance Industries Limited’s (RIL) telecom and digital services arm, Jio Platforms, is preparing to launch its initial public offering (IPO), reportedly expected to open between 21 October and 23 October. Market reports indicate a targeted valuation of around ₹10.3 lakh crore. Experts say long-term investors can consider the issue, but short-term listing gains remain uncertain. Expected IPO Dates and Issue Details Reports indicate that the Jio Platforms IPO will open for subscription on 21 October, 2026, and close on 23 October, 2026. The official price band is expected to be announced around 15-16 October. The final share listing on the BSE and NSE is expected on 28 October, 2026. The reported price band of ₹1,065 to ₹1,119 per share values the company at approximately ₹10.3 lakh crore. This valuation is lower than initial market estimates of ₹11 lakh crore to ₹14 lakh crore. According to research notes from PHD Capital, the IPO is structured entirely as a fresh issue of shares. This means all funds raised will enter the company directly rather than going to existing shareholders selling their stakes. A large portion of these proceeds will be used to reduce Jio’s corporate debt. Key Financials and Operational Scale Jio Platforms reported strong financial performance in FY26. Profit After Tax (PAT) rose nearly 15% year-on-year to over ₹30,000 crore. Operating profit (EBITDA) margin stood at 51.9%. The total subscriber base crossed 52.4 crore (524 million) users. Average Revenue Per User (ARPU) stands at approximately ₹216 per month. This figure remains lower than competitor Bharti Airtel’s ARPU of around ₹264, leaving headroom for future price increases and revenue expansion. Valuation Metrics at Different Share Prices Lovelesh Sharma, CMT, CFTe, founder at IndexBreadth, noted that while Jio has strong business fundamentals, valuation is the key factor for investors. Based on an estimated FY26 diluted Earnings Per Share (EPS) of ₹33.59, he provided the following price-to-earnings (P/E) ratio breakdown: Sharma advised retail investors not to apply blindly for short-term listing gains and to evaluate the final official price band before applying. Comparison with Telecom Peers Santosh Meena, Head of Research at Swastika Investmart, stated that the target valuation implies a forward EV/EBITDA multiple of roughly 12x. This represents a 15% to 17% premium over Bharti Airtel’s Indian business operations. Vinit Bolinjkar, Head of Research at Ventura Securities, noted that Jio’s 12x EV/EBITDA multiple positions it between Bharti Airtel (~10x) and Vodafone Idea (~16x). Bolinjkar added that Jio benefits from its network scale, data usage growth, and potential expansion into AI infrastructure and data centers, which require fiber and enterprise connectivity. Impact on Parent Company Reliance Industries Reliance Industries Limited (RIL) currently holds a 66.4% stake in Jio Platforms. At an estimated ₹11 lakh crore company valuation, RIL’s holding is worth over ₹7 lakh crore. Vinit Bolinjkar explained that listing Jio provides clear price discovery for RIL’s assets. However, because only 2.5% to 3% of Jio is expected to be listed initially, a holding-company discount on RIL shares may persist. Investors will still hold Jio indirectly through RIL. Further value unlocking for RIL shareholders may depend on future dividend payouts or additional stake sales. Listing Day Expectations and Past Mega IPO Performance Recent Indian mega IPOs exceeding ₹10,000 crore have seen flat or modest listing-day returns. Santosh Meena pointed out previous large issues: How Jio Shares Trade At Unofficial Market? The Grey Market Premium (GMP) for Jio is currently reported in the ₹160 to ₹175 range, suggesting an estimated 14% to 15% listing premium over the upper price band. However, analysts warn that grey market figures are unofficial and subject to rapid shifts based on broader stock market volatility. Retail Investor Strategy: Long-Term vs Listing Gains Stock market experts agree on a divided outlook depending on investor goals: For Long-Term Investors (3 to 5 Years): Experts view Jio as a steady long-term compounding business due to its market share, profitability, debt reduction, and digital ecosystem expansion. For Short-Term Traders (Listing Gain Seekers): Analysts suggest cautious expectations. Weak broader market sentiment and the large size of the IPO limit the chance of a sharp listing pop. Shareholder Quota Advantage: PHD Capital Research Desk noted that existing RIL shareholders can apply under both the retail quota and the shareholder quota, increasing their allotment probability. Experts recommend applying with surplus funds rather than borrowed capital. Did You Know? Google Meta Invested In Jio When India Was Put Under Lockdown During Covid-19 Pandemic Google and Meta had invested in Reliance Industries subsidiary Jio Platforms in 2020. With Jio’s IPO expected at a valuation between ₹10.3 lakh crore and ₹11 lakh crore, the combined value of their stakes is estimated to have increased by over 136% according to media reports. Meta and Google Investment Breakdown In 2020, Reliance Industries Limited (RIL) sold stakes in Jio Platforms to global technology firms Meta and Google to raise expansion capital and reduce corporate debt. According to regulatory filings with the BSE and NSE, Meta (then Facebook) acquired a 9.99% equity stake through its subsidiary Jaadhu Holdings, LLC in April 2020. Meta invested ₹43,574 crore. In July 2020, Google acquired a 7.73% equity stake through Google International LLC. Google invested ₹33,737 crore at that time.