Jio IPO: GMP rises; Ventura, SMC Global, SBI Securities, 3 others share views

SMC Global | 3 out of 5 stars

SMC Global said Jio Platforms is well-positioned for long-term growth, supported by its 5G infrastructure, digital ecosystem and AI-led services. Normalising capital expenditure could improve free cash flow, the domestic brokerage said.

"Expansion in fixed wireless access, enterprise cloud solutions and international technology monetisation could support future growth, subject to effective execution," it added.

Ventura Securities | Subscribe

Ventura Securities said that, beyond mobile connectivity, Jio is scaling home broadband, enterprise technology and AI-led services. Jio had 2.86 crore fixed broadband customers, including 1.4 million JioAirFiber subscribers, it said.

"Jio has developed an end-to-end proprietary 5G standalone stack and filed 7,220 patent applications across 4G, 5G, 6G, AI and digital technologies. Its proprietary AI platform, JioBrain, is being deployed across network operations and forms part of its broader technology monetisation strategy," Ventura said, noting that Jio's balance sheet leverage remained at comfortable levels.

SBI Securities | NA

SBI Securities said the proposed repayment of RJIL's borrowings is expected to lower leverage and finance costs, strengthen cash flows and provide financial flexibility for future investments.

"Future growth is expected to be supported by tariff rationalisation, migration from 2G to 4G and 5G, higher data consumption, home broadband expansion and increasing enterprise adoption of cloud and digital solutions. Additional monetisation opportunities may emerge from AI-led services, digital applications, satellite connectivity and overseas deployment of its proprietary technology platforms," it said.

Arihant Capital Markets | Subscribe

Arihant Capital Markets said Jio Platforms has strong growth potential, supported by its leadership in India's digital connectivity market. It said the IPO is priced at a discount to listed peer Bharti Airtel but flagged Jio's dependence on Reliance Retail for prepaid distribution, related-party dealings within the Reliance Group, spectrum and regulatory risks, and lower return on net worth compared with Bharti Airtel.

"At the upper price band of Rs 1,119, the issue is priced at a P/E of 34.3 times based on the post-issue FY26 EPS of Rs 32.63. We recommend a 'Subscribe' rating for the issue," it said.

Emkay Global | Subscribe

Jio logged a 15.8 per cent revenue CAGR over FY24-26, with ARPU increasing from Rs 181.70 to Rs 214. The telecom operator saw subscriber additions of 4.26 crore during this period.

Emkay said Jio's growth strategy is built on this base. "JPL aims to extend mobility leadership via 5G and 2G-to-4G/5G migration, make home broadband its next major growth driver, deepen enterprise and SME relationships through managed services, and offer its in-house tech stack to operators overseas," Emkay Global said.

At the price band, Emkay said Jio is valued at 31.7-33.3 times FY26 EPS. On an EV/Ebitda basis, it is valued at 15.0-15.6 times FY26 Ebitda, against its 16.2 per cent Ebitda CAGR.

"Given its market leadership, pricing power, growth levers and execution record, we recommend subscribe," Emkay Global said.

Swastika Investmart | Subscribe

Swastika Investmart said Jio's IPO is priced at 33.3 times earnings per share, 18 per cent below Bharti Airtel's 40.71 times. Jio's 12 times EV/Ebitda multiple is seen as reasonable relative to its higher market share, double-digit Ebitda growth rate and dominant home broadband expansion.

"However, Jio commands a 15-17 per cent multiple premium over Bharti Airtel's India business, while Airtel offers superior return on capital employed (ROCE) and higher current ARPU. Focus on structural industry health, pointing out that tariff discipline among Indian telcos (Jio, Airtel, Vi) has created an ideal market structure for ongoing ARPU hikes."