Dharmesh Kant, Head of Equity & Derivative Research at Chola Securities, told CNBC-Awaaz that he expects listing gains of 15-20% and advised investors to consider both Jio and Bharti Airtel for exposure to the telecom sector. Jio is slated to list on October 28, on both NSE and BSE.
He said Jio's 12-15% valuation discount to Bharti Airtel was justified, given the difference in their growth rates.
Bharti Airtel is growing at around 20-22%, while Jio's guidance, as outlined at its analyst conference, was for growth of around 15-17%.
Kant added that after the listing gains, Jio's pricing improvements would support its growth of 15-17%. He said investors looking to invest in the telecom space should consider both Jio and Bharti Airtel.
The IPO will remain open for subscription until October 23, with a price band of Rs 1,065-1,119 per share. The offer comprises up to 27 crore fresh shares.