Jio Platforms extends blockbuster run, shares rally another 5% on Day 2 of listing; what investors need to know

Shares of Jio Platforms continued their strong run on Thursday, October 29, rallying another 5% on the second day of trading after a blockbuster stock market debut. The stock extended its gains after listing on Wednesday, October 28, following the ₹30,213-crore initial public offering (IPO), which was fully subscribed within 100 minutes of opening.

In early trade, the stock jumped as much as 5% to hit the day’s high of ₹1,489.70 on the NSE, against its previous close of ₹1,417.50.

The sharp post-listing rally has put the spotlight on Jio Platforms’ valuation, growth prospects and the sustainability of its market momentum.

The key question is whether the buying momentum can continue after the strong debut or whether investors will start booking profits at higher levels.

Parent company Reliance Industries (RIL) is also scheduled to announce its September quarter results on Friday.

Jio listing: Reliance Group becomes biggest conglomerate by market valuation

The strong listing of Jio Platforms Ltd made the Reliance Group the biggest conglomerate by market valuation on Wednesday, overtaking the Tata Group.

The company's market valuation stood at ₹13 lakh crore.

At the close of trade on Wednesday, Reliance Industries' market valuation was ₹15.67 lakh crore, Jio Platforms commanded an mcap of ₹13 lakh crore and Jio Financial Services ₹1.35 lakh crore. The combined market valuation of the Reliance Group stood at ₹30 lakh crore, according to BSE data.

On the other hand, the combined market valuation of the Tata Group firms, including TCS, Tata Steel, Titan, Tata Power, Tata Motors Passenger Vehicles and Trent, stood at ₹25.28 lakh crore.

The Tata Group had held the numero uno rank in terms of market capitalisation (mcap) for a long time.

Jio Platforms also became the second most valuable domestic firm by market capitalisation only behind Reliance Industries.

"In the primary market, Jio Platforms made a strong debut, listing at Rs 1,358 on both exchanges, a 21.36 per cent premium to its issue price of Rs 1,119, taking its market capitalisation to Rs 13 lakh crore, making it India's second-most valuable listed company after Reliance," said Siddhartha Khemka, Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd, said

Khemka added, "The strong debut breaks the recent run of disappointing mega-IPO listings and signals sustained investor appetite for quality offerings, potentially supporting the IPO pipeline into the next quarter."