Jio IPO Listing: The Mega Initial Public Offering i.e. IPO of Jio Platform Limited is a hot topic among investors. Allotment of shares under this issue has been completed and now the investors who have not received shares are eyeing its stock exchange debut. The company is going to list on NSE and BSE on 28th October. In such a scenario, the biggest question is whether investors should buy the shares on the listing day or wait for the decline. This whole issue has become very important for investors.
Great subscription statistics
According to data from the National Stock Exchange, open from October 21 to October 23 Rs. 30,188 crore, this IPO was subscribed a total of 22.19 times. This clearly shows how big the demand for this issue was among investors of every category. The company has set a final issue price of Rs. 1,119 per share has been fixed. The IPO involves a fresh issue of 27 crore shares. Those who did not get the allotment or those who could not apply will now have the opportunity to buy the shares of this company through the secondary market. However, market experts believe that investors should keep a close eye on stock movements before entering the market.
A listing premium of this much is expected
Fundamental analyst Ambarish Baliga says institutional demand in the Jio IPO was much higher than expected. Now it remains to be seen whether this demand in the secondary market remains unchanged even after the listing. If that happens, the stock could go higher. Although the premium in the gray market suggests around 20 to 22 per cent, considering the large size of the issue, Baliga expects a nominal listing premium of 8 to 10 per cent.
He has advised investors to avoid indiscriminate buying if the stock opens too high. Investors who have not received allocations may consider buying around the IPO price if they see a correction after the initial surge in the stock. Baliga also says that since the size of this IPO is very large, there may be selling pressure due to profit booking after the listing.
Right time to buy
Avinash Gorakhskar, founder of Avinash Mentor Research Services, has also given a similar opinion. He says investors who have not received allocations should wait for the stock to stabilize rather than jump in immediately in the early trading session. According to him, a stock may rise rapidly immediately after listing, but then profit booking i.e. profit booking may be seen in it. As per Gorakshkar’s advice, non-IPO investors should monitor the stock’s fluctuations in the early sessions and take a firm decision only then.
