Shares of Reliance Industries’ digital and telecom subsidiary, Jio Platforms Ltd, made a strong debut on the NSE and BSE on Wednesday after its Rs 30,213-crore initial public offering (IPO).

Jio Platforms shares opened at Rs 1,358 apiece on both exchanges, marking a 21.36 per cent premium over the issue price of Rs 1,119 per share. Following the listing, the company’s market capitalisation crossed Rs 12.5 lakh crore, making it India’s second-largest listed company.

India’s biggest IPO attracted strong investor demand, with overall subscriptions reaching 22.19 times the shares on offer. Qualified institutional buyers led the bidding, subscribing to 70.55 times their allotted portion.

Investors will now assess whether Jio Platforms can sustain revenue growth, improve profitability and execute its expansion plans while maintaining healthy cash flows. Despite its strong opening, the shares traded nearly flat.

Brokerage firms Nomura, Motilal Oswal Financial Services and Elara Securities initiated coverage of Jio Platforms shares with ‘Buy’ ratings.

Nomura said Jio had evolved from a disruptor into a market leader. The company commands 42 per cent of India’s wireless subscribers, accounts for 60 per cent of data traffic and holds a 43 per cent share of the home broadband market.

“In our view, the listing will likely push Jio Platforms, the price setter, towards steady tariff hikes that peers can follow. We estimate a 13.5 per cent EBITDA CAGR over FY26-29,” Nomura said.

The brokerage initiated coverage of Jio Platforms with a ‘Buy’ rating and set a target price of Rs 1,340.

Motilal Oswal expects rising profitability and controlled capital expenditure to generate cumulative free cash flow (FCF) of Rs 1.46 lakh crore over FY26-29. The brokerage also expects Jio Platforms to achieve a net cash position by FY29. It initiated coverage with a ‘Buy’ rating and set a target price of Rs 1,350.

Motilal Oswal believes Jio Platforms could trade at a premium to Bharti Airtel’s India business in the near term. It attributed this potential premium to Jio’s market leadership, greater influence over industry tariffs and limited share liquidity, with a free float of less than 3 per cent.