Reliance Group Overtakes Tata Group as Top Conglomerate
Jio Platforms has become India's second most valuable publicly traded company, achieving a market capitalization of Rs.12.50 lakh crore after its stock market launch today. Reliance Industries' (RIL) digital and telecom division now stands valued at approximately Rs.16.15 lakh crore, placing it ahead of Bharti Airtel, which has a market capitalization of Rs.12.08 lakh crore, but behind its parent company.
Jio Platforms stocks debuted at Rs.1,358 on the BSE and NSE, reflecting a premium of 21.36 percent above the IPO price of Rs.1,119.
The listing signifies a notable change in the valuation hierarchy of India’s telecom industry, as Jio surpasses Bharti Airtel in market capitalization. As a result, Jio Platforms has also emerged as the fourth founder-led company worldwide to exceed $100 billion in enterprise value at its IPO.
The listing has also altered the standings of India’s biggest business conglomerates.
By increasing the Reliance Group's listed market value, Jio Platforms has allowed the group to surpass the Tata Group, making it India’s most valuable conglomerate, with a total market capitalization exceeding Rs.28 lakh crore, in contrast to Tata Group’s Rs.26 lakh crore.
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Prior to the listing of Jio Platforms, the Reliance Group comprised 12 listed firms with a total market capitalisation exceeding Rs.18 lakh crore. Reliance Industries, with a value nearing Rs.16.15 lakh crore, represented the majority of the group's market value, while Jio Financial Services stood at about Rs.1.35 lakh crore. The listing of Jio Platforms has incorporated another significant entity into the group's listed portfolio, enhancing its standing in the corporate valuation rankings.
The Adani Group stands in third place, boasting a total market capitalization exceeding Rs.17 lakh crore, while the HDFC Group occupies the fourth position, at almost Rs.14 lakh crore. As of October 23, HDFC Bank, with a valuation of Rs.10.67 lakh crore, is the primary contributor to the market value of the HDFC Group.
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The Rs.30,213-crore IPO of Jio Platforms exceeded Hyundai Motor India’s Rs.27,870-crore offering in 2024, making it India’s largest IPO based on issue size. It established a new standard for investor involvement, drawing around 1.37 crore applications and becoming the initial Indian public issue to exceed the one-crore threshold.
The issue received 22.19 times more subscriptions by the end of bidding on October 23, with investors placing bids for 438.26 crore shares compared to the 19.75 crore shares available. The robust reaction occurred despite significant fluctuations in the secondary market due to ongoing selling by foreign portfolio investors (FPIs).
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Qualified institutional buyers (QIBs) became the primary force behind demand, offering bids for 345.76 crore shares compared to the 4.90 crore shares set aside for their category, not counting anchor investors. This resulted in a subscription rate of 70.55 times, emphasizing a robust institutional demand for the offering even amid weakness in the larger equity market.