The IPO is witnessing a stronger response from institutional investors. The segment reserved for qualified institutional buyers (QIBs) was booked 13.29 times by the end of day two.
Meanwhile, grey market sources suggest the stock can list at a decent premium of over 20%. Jio Platforms IPO GMP on Friday morning was ₹240, indicating the stock can list at ₹1359, a premium of 21.45% over the upper band of the issue price of ₹1,119.
"I would recommend applying for the IPO with a long-term investment horizon. Investors should not base their decision solely on whether the stock rises marginally or opens flat on the listing day. The focus should be on the company's long-term growth prospects," said Ajit Mishra, SVP – Research, Religare Broking.
"At around 11.6 times its estimated EBITDA, the valuation is not particularly cheap. However, considering the company's growth trajectory and the potential to unlock value from businesses beyond telecom, including cloud and artificial intelligence (AI), the long-term outlook holds promise. Therefore, the stock could be a good long-term investment," said Mishra.
Mishra added that investors who do not receive an allotment should wait before buying the stock if it lists at a significant premium.