Jio Platforms Ltd. has added almost $36 billion in market value in two trading sessions, extending its blistering run after India’s biggest-ever initial public offering and underscoring investor appetite for direct exposure to the telecom and digital-services giant.
Shares of Reliance Industries Ltd.’s unit jumped as much as 5.1% Thursday, building on a nearly 27% surge in their trading debut. The gains lifted Jio’s market value to about $144 billion, compared with roughly $108 billion at its IPO price, cementing its position as India’s second-most valuable listed company.
Attention now turns to Jio’s quarterly earnings on Friday, which will offer a fresh test of whether the company can justify its rich valuation. Investors will be watching for signals from Akash Ambani, the eldest son of Reliance Chairman Mukesh Ambani, on the outlook for revenue and profit growth as Jio seeks to capitalize on a customer base of more than 500 million.
“Some investors are looking past first-day gains, which makes earnings commentary more crucial for the stock,” said Vikas Gupta, a strategist with OmniScience Capital. “The stock offers direct exposure to segments seen as new-age businesses, and investors are showing preference for it — at least in the short term.”
On Wednesday, the stock saw about 69% of the roughly 194 million shares traded being marked for delivery, indicating buyers were willing to hold the stock even after one of the strongest debuts among India’s biggest IPOs, data compiled by Bloomberg show.
Meanwhile, Reliance shares gained more than 2% on Thursday, rebounding from a tumble of over 3% in the previous session. The parent holds two-thirds of Jio Platforms.
Disclaimer: This report is auto generated from the Bloomberg news service. ThePrint holds no responsibility for its content.