Jio Platforms gets first Buy call! Nomura says ‘disruptor now the leader
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Shares of Jio Platforms listed at Rs 1,359 on BSE and NSE, a premium of 21% over the IPO price. Nomura set a target price of Rs 1,340, implying 20% upside from the issue price of Rs 1,119. The brokerage cites Jio’s leadership in wireless subscribers, data traffic and home broadband, adding that its listing could support steady tariff hikes and drive monetisation.
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Loading...×Shares of Jio Platforms, the country’s largest public offer to date, listed at Rs 1,359 on BSE and NSE on Wednesday, an impressive 21.36% premium over the IPO price of Rs 1,119 per share. International brokerage Nomura initiated coverage on the stock with a Buy rating, and a target price of Rs 1,340, implying an upside of 20% from the issue price of Rs 1,119.The global brokerage says Jio Platforms is a scale leader entering the monetisation cycle. “Jio, once the disruptor, is now the leader. It has ~42% of the country’s wireless subscribers, ~60% of data traffic and 43% of home broadband. In our view, the listing will likely push Jio Platforms (JPL IN), the price setter, towards steady tariff hikes that peers can follow,” Nomura said in a report on Wednesday.
Read More: Jio IPO Listing Live Updates
Long-term value creation
Jio Platforms, India's largest telecom operator, held a 41.7% share of wireless subscribers, excluding M2M, in August 2026, according to TRAI. With the widest 5G coverage, data usage per subscriber 27% higher than Airtel's and the lowest monthly churn rate among peers at 1.6%, Jio is well positioned to narrow its ARPU gap with Airtel, analysts say. A 15% industry-wide tariff hike in November-December 2026 could provide an immediate boost to ARPU.Home broadband: Second growth engine: Home broadband is emerging as Jio's second growth driver, with its subscriber base reaching 28.6 million in June 2026, compared with Airtel's 14.7 million, supported by an aggressive rollout of FWA and UBR services. With broadband penetration in India at just 21%, against a global average of over 70%, the market offers a potential base of more than 300 million households and a decade-long growth opportunity.
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Nomura believes Jio's FWA model is more capital-efficient because it leases customer premises equipment from third parties, unlike fibre to the home (FTTH), where around 25% of homes passed do not convert into subscribers, leaving the fibre investment unrecovered.
Debt-free by FY29: With most of its 5G investment cycle behind it, Jio's capital expenditure (capex) is expected to decline, falling to around 23% of revenue in FY26 from 35% in FY25, freeing up significant cash flow and driving a sharp improvement in free cash flow (FCF). Nomura says Jio Platforms' balance sheet is also strengthening, with net debt-to-equity, including deferred payment obligations, declining from 0.56 times in FY24 to 0.37 times in FY26. Nomura expects Jio to become debt-free on a net basis by FY29.
Also read:Didn’t get Jio IPO shares? Experts decode the listing-day playbook for investors
Tech licensing offers long term growth - Jio's proprietary end-to-end 5G technology stack, spanning the core network, devices and Operations Support Systems/Business Support Systems (OSS/BSS), has made India the fifth country globally with indigenous 5G capabilities, Nomura said. Its proprietary Unlicensed Band Radio (UBR) technology also creates opportunities to license the technology to telecom operators worldwide. Jio is initially targeting up to 12 strategic partnerships, with access to 1.5 billion potential users across the US, Germany, South America, East Asia and Africa.
Jio Platforms IPO
Jio Platforms' Rs 30,213 crore IPO surpassed Hyundai Motor India's Rs 27,870 crore offering to become the largest public issue in India's capital market history. The issue was fully subscribed within 100 minutes of opening, reflecting strong early participation from institutional and retail investors.The public book attracted bids worth more than Rs 4.9 lakh crore, while the anchor allocation drew substantial interest from leading domestic and international investors. The IPO attracted more than 1.38 crore applications, according to Investoyard data, setting a new reported record for investor applications.
Read more: Jio’s big-bang listing may give it stock market’s No.2 crown after Reliance Industries
Jio raised Rs 8,110 crore through its anchor allocation ahead of the public issue, with institutional investors including BlackRock, Fidelity and Life Insurance Corporation of India participating. At the upper end of its price band of Rs 1,065-1,119, Jio Platforms is valued at Rs 10.3 lakh crore, placing it among India's most valuable companies.
The offering comprised 27 crore fresh equity shares, with no offer-for-sale component. Existing shareholders, including Reliance Industries and strategic investors, did not sell shares through the IPO.
Disclaimer: This article has been written by Veer Sharma, who is not a SEBI-registered Research Analyst or an Investment Adviser. Veer Sharma and his/her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here.
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Figures reflect the source report and its stated period. This article is for information and is not investment advice.
