Jio Platforms IPO draws ₹3.2 lakh crore in demand, with ARPU and broadband in focus

what happened

According to TradingView, citing MarketSmith India, the strong response to the Jio Platforms share sale fits expectations of higher revenue across the telecom sector. Mayuresh Joshi, Director of Research at MarketSmith India, pointed to an ARPU gap of ₹48 to ₹50 between Bharti Airtel and Jio.

Joshi said investors largely expect Bharti to raise its ARPU first. If Bharti's ARPU tops ₹300 in the coming months, Reliance could use that gap to lift its own ARPU by ₹15 to ₹20. He also called broadband subscriber growth a major opportunity for both operators. He remains upbeat on Jio and Bharti Airtel.

On its first day, October 21, the offering drew total bids of ₹3.2 lakh crore and was fully subscribed in under 100 minutes. That total includes ₹70,000 crore of day-one bids and a ₹2.5 lakh crore anchor book, lifting overall subscription to 3.2 times. Qualified institutional buyers oversubscribed their portion 9.4 times, while retail bids reached ₹6,900 crore, the highest day-one retail participation for any Indian IPO. The issue closes on October 23, allotment is due October 26, and trading on NSE and BSE is set to begin October 28.

why it matters

Demand of this scale signals strong investor appetite for India's telecom sector and digital assets. Once listed, the company is expected to rank among the country's five largest firms by market value, which could affect index flows and sector valuations.

market impact

Bharti Airtel, Reliance: expectations of ARPU and broadband growth support sentiment across India's telecom stocks

tags

instruments