Jio Platforms IPO surge ends Tata's reign as India's most valuable group

Jio Platforms Ltd's blockbuster stock market debut has propelled the digital company as well as its parent Reliance Industries Ltd into rarefied air. It also helped Mukesh Ambani's conglomerate topple Tata Group as India's largest conglomerate by market value.

Jio's shares rose as much as 23 per cent on their first day of trading on Wednesday, giving the company a valuation of more than ₹12.5 trillion ($131.4 billion). That pushed Reliance Group's combined market value past ₹30 trillion, surpassing Tata Group's ₹25 trillion, according to data compiled by Bloomberg News. Tata Group had held the top position by market value for most of the past decade, the data showed.

Jio, which listed after India's largest initial public offering (IPO), also overtook its nearest sector rival, Bharti Airtel Ltd, to become the world's sixth-most valuable telecom company. It is now India's second-most valuable company by market capitalisation, trailing only its parent, Reliance Industries.

The listing was an emotional moment for Ambani, who rang the listing bell with four generations of his family on stage, from his mother to his grandchildren. The $3.1 billion IPO was fully subscribed in less than 100 minutes and received bids for 22 times the shares on offer. Its strong market debut signalled that it was on course to buck the poor track record of India's mega IPOs.

"Sometimes a big listing can alter the mood of the investing nation, and we all hope Jio does that to the Indian market," said Shankar Sharma, founder of GQuant Investech.

Reliance Industries' shares have declined 25.4 per cent this year, while the benchmark NSE Nifty 50 has fallen nearly 13.3 per cent.

However, the newly listed telecom giant will have to wait several months before it can be included in India's benchmark stock indices, such as the Nifty 50. Stock exchanges must first introduce derivatives products on the stock before it becomes eligible for inclusion in the benchmark indices.