Jio IPO: QIBs Rush In at 9.02x, Is Jio Really Undervalued?

The ₹30,213 crore Jio IPO is witnessing strong institutional demand on October 21, 2026. The issue has now been subscribed 3.01 times overall, with Qualified Institutional Buyers (QIBs) leading at 9.02 times subscription.

Interestingly, retail subscription stands at just 0.68 times despite strong institutional demand. This raises an important question: Are institutions finding Jio undervalued, or is something else attracting them to the IPO?

Jio IPO Day 1 Subscription: QIBs at 9.02x, Retail at 0.68x

Source: Latest subscription data provided, October 21, 2026.

The difference between investor categories is striking. QIB subscription has increased from 8.97x to 9.02x, while overall subscription has crossed the 3x mark, rising from 2.97x to 3.01x.

NII subscription has also climbed to 1.58x, while employee and shareholder quotas stand at 1.30x and 1.38x, respectively. However, retail subscription remains at just 0.68x, showing a significant difference in demand across investor categories.

Institutional interest was visible even before bidding opened. Jio's ₹8,110 crore anchor allocation reportedly attracted bids worth approximately ₹2.5 lakh crore, with participation from major global investors, including BlackRock and Fidelity.

Why Are Institutional Investors Rushing Into the Jio IPO?

Three factors may explain the strong institutional demand.

1. A profitable business with massive scale: Jio serves 53.33 crore customers and reported ₹1,46,885 crore in FY26 revenue, with ₹30,049 crore in net profit. Its 51.91% EBITDA margin suggests that institutions are evaluating an established, profitable business rather than an unproven growth opportunity.

2. Higher revenue from existing customers: Jio's average revenue per user (ARPU) increased from ₹181.7 in FY24 to ₹215.6 in Q1 FY27. Higher customer spending could support earnings growth without relying entirely on new subscriber additions.

3. Potential debt reduction: Jio plans to use ₹27,500 crore from IPO proceeds to repay borrowings. This could reduce financing costs and improve future profitability.

These factors offer possible explanations for institutional interest. However, subscription data alone cannot confirm what motivated individual QIBs to participate.

Is Jio IPO Undervalued? Jio vs Airtel Valuation Comparison

At the upper IPO price band of ₹1,119 per share, Jio Platforms is valued at approximately ₹10.3 lakh crore.

Jio is priced at an approximately 15.7% P/E discount to Bharti Airtel, making it relatively cheaper based on earnings.

However, Airtel generates significantly higher returns on capital, suggesting it uses its investments more efficiently to generate profits. This could partly explain why investors are willing to pay a higher earnings multiple for Airtel.

Therefore, Jio appears relatively attractively valued on P/E, but that doesn't necessarily mean it is undervalued. Its lower capital efficiency suggests that part of the valuation discount may be justified.

That is why the valuation needs to be judged alongside future monetisation, not P/E alone. Investors who want a broader framework for assessing such trade-offs can refer to INDmoney's guide on how to analyse an IPO.

Jio IPO Takeaway: Strong QIB Demand Doesn't Mean It's Cheap

Jio's 9.02x QIB subscription and 3.01x overall demand reflect strong institutional interest in its business scale, profitability and growth potential. However, its valuation suggests a reasonably priced business rather than a deeply undervalued opportunity, and strong subscription alone does not guarantee listing gains.

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