Jio Platforms IPO vs Paras Healthcare IPO Listing: GMP Surges; Which Stock Could Deliver Higher Gains?

Two big IPOs are going to hit the dalal street tomorrow and investors who were allotted the share are now waiting for the Jio Platforms and Paras Healthcare to list on the BSE and NSE.

However, the Jio Platforms IPO and the Paras Healthcare IPO have a massive difference in grey market premium, subscription figures and investor demand ahead of their stock market debut.

The current GMP for Jio Platforms stands around Rs 261, implying a potential listing price of approximately Rs 1,365 against its upper issue price of Rs 1,119.

Meanwhile, Paras Healthcare's GMP has fallen to around Rs 12 per share and the expected listing price is Rs. 705.

Jio Platforms IPO vs Paras Healthcare IPO Subscription Status

If we look at the subscription figures, the two IPOs received strong demand before their closing dates. Both issues closed on October 23, but Jio Platforms recorded comparatively higher overall subscription with QIBs leading the charts.

Jio Platforms' IPO received an overall subscription of 22.19 times, with the QIB portion subscribed 70.55 times. Its non-institutional investor category was subscribed 14 times, while the retail portion received 2.72 times subscription.

However, Paras Healthcare's IPO was subscribed 2.34 times overall. While its retail portion received 2.10 times subscription, the NII portion remained undersubscribed at 0.69 times.

Jio Platforms Vs Paras Healthcare IPO Details

Jio Platforms' IPO is valued at approximately Rs 30,213 crore, with the issue comprising entirely fresh shares. A substantial portion of the proceeds, up to Rs 27,500 crore, is kept aside for repayment of loans. The price band was fixed at Rs 1,065 - Rs 1,119 per share, with a lot size of 12 shares.

Paras Healthcare's public issue was valued at approximately Rs 1,450 crore, comprising a fresh issue of around Rs 500 crore and an offer for sale of approximately Rs 950 crore.

The company fixed its price band at Rs 660-Rs 693 per share, with a lot size of 21 shares. At the upper price band, the minimum investment for one lot was Rs 14,553, excluding applicable charges.

Jio Platforms vs Paras Healthcare: Business and Valuation Comparison

Jio Platforms' reported valuation is approximately Rs 10.3 lakh crore. Jio's average revenue per user (ARPU) was reported at Rs 215.6.

Paras Healthcare: The hospital operator works under the Paras Health brand and focuses on clinical specialties. It operates hospitals across North India and Bihar. Its reported market capitalisation is approximately Rs 6,998 crore before the IPO and Rs 7,498 crore after the issue, based on the offer price.

Which IPO Has Higher Listing Gain Potential: Jio Platforms or Paras Healthcare?

"We expect Jio Platforms to list at a premium of around 20% over the upper price band of Rs. 1,119. Subscription has been healthy considering the sheer size of the issue, which reflects strong confidence in Jio's market leadership, its proprietary 5G stack and the visible earnings growth from tariff hikes and ARPU expansion," said Sarvam Goel, Founder, Pocketful.

"Since most of this upside may be captured on listing day, investors who applied for listing gains can consider booking partial profits. Long-term investors should stay invested and use any post-listing correction as a chance to accumulate, given Jio's scale and growth outlook over the next 3-4 years. Near-term risks include broader market volatility and supply pressure from the large issue size," he added.

Paras Healthcare, meanwhile, could deliver a smaller gain, list near its issue price or trade below the issue price. A low GMP leaves less implied upside, but it does not necessarily determine the stock's longer-term investment prospects.

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