Brokers back Jio Platforms IPO on strong earnings growth and cash flow

what happened

Several Indian brokerages have recommended that investors subscribe to the upcoming Rs 30,213 crore initial public offering of Jio Platforms. Analysts at Emkay Global Financial Services, Ventura Securities and GEPL Capital point to rapid EBITDA and profit growth, along with better cash generation as the company moves past its heavy 5G network build-out phase.

According to an Emkay research note cited by ANI, EBITDA grew at a compound annual rate of 16.2% and profit after tax at 18.4% over FY24–FY26. Capital expenditure fell from 48.8% of revenue to 23.3%, while operating cash flow rose to about Rs 77,556 crore. The offer opens on October 21 and closes on October 23, with a price band of Rs 1,065–1,119 per share and listing expected on October 28. Proceeds are mainly earmarked for prepaying borrowings of subsidiary Reliance Jio Infocomm, with Rs 27,500 crore allocated to that purpose.

why it matters

For markets, this is a large offering that could affect liquidity and valuations across India's telecom and digital services sector. GEPL said the issue's price of about 33.3 times FY26 earnings appears fair. Investors will watch how the listing performs and what it means for Reliance Industries shares.

market impact

Reliance Industries and Indian telecom: a large listing affects liquidity and sector valuation

tags

instruments