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Brokerage houses have recommended subscribing to Jio Platforms' upcoming Rs 30,213 crore initial public offering (IPO), citing its strong earnings growth, improving cash generation and opportunities to expand beyond traditional telecom services into digital technology businesses.
Research reports by Emkay Global Financial Services, Ventura Securities and GEPL Capital highlight the company's market leadership, expanding broadband business and proprietary technology platforms as key factors supporting its long-term growth prospects. The IPO, which opens for subscription on October 21 and closes on October 23, has a price band of Rs 1,0651,119 per share. The entirely fresh issue is expected to list on stock exchanges on October 28. According to the IPO research note by Emkay Global Financial Services, Jio Platforms recorded compound annual growth of 16.2 per cent in earnings before interest, taxes, depreciation and amortisation (EBITDA) and 18.4 per cent in profit after tax during FY24FY26. Highlighting the company's financial performance and valuation, Emkay said the offering was "reasonably priced given the growth clocked in". The brokerage noted that capital expenditure declined from 48.8 per cent of revenue in FY24 to 23.3 per cent in FY26, while operating cash flow increased to approximately Rs 77,556 crore. This improvement in cash generation comes as the company moves beyond its major 5G network investment phase, potentially creating greater financial flexibility for future expansion. GEPL Capital, in its IPO assessment, also recommended subscribing to the issue, stating that its valuation of approximately 33.3 times FY26 earnings appeared fair considering the company's market position and growth opportunities. "Based on FY26 earnings, the issue is priced at a P/E of 33.3x, which appears fairly valued," GEPL said in its report. The brokerage identified subscriber additions, higher average revenue per user and increasing adoption of digital services as important drivers of future growth. Ventura Securities, which also assigned a Subscribe recommendation, highlighted Jio's position as India's largest integrated digital connectivity platform. According to Ventura's IPO research note, Jio Platforms served 533.3 million customers as of June 30, 2026, while its network carried around 60 per cent of India's wireless data traffic in FY26. The company's expansion into home broadband, enterprise solutions, cloud computing and artificial intelligence is expected to provide additional opportunities beyond mobile connectivity. Jio's proprietary 5G technology stack and JioBrain AI platform are among the capabilities identified in the research reports as potential avenues for developing enterprise solutions and expanding technology offerings into international markets. The IPO proceeds are primarily intended to prepay certain borrowings of Reliance Jio Infocomm, the company's material subsidiary, with Rs 27,500 crore earmarked for the purpose. The brokerage assessments indicate that Jio's next phase of growth could increasingly depend on generating higher revenue from its existing customer base while expanding its digital and enterprise businesses. (ANI)
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