Jio Platforms became India’s fourth-largest margin-funded stock on its debut day.
Indian retail investors borrowed 22.28 billion rupees ($234.06 million) to buy Jio Platforms shares on Wednesday, making it the fourth-largest margin-funded stock in the country, as strong listing-day demand encouraged traders to take on more risk.
Shares of billionaire Mukesh Ambani’s telecom and digital company jumped 26.7% in debut trade, valuing it at around $137 billion and making it India’s second-largest listed company by market capitalisation.
The National Stock Exchange of India classified Jio Platforms under Group 1 securities on debut, and the BSE under a similar Group A category, making the stock eligible for margin funding from its very first session. Only HDFC Bank, Reliance Industries and BSE Ltd have larger margin trading facility positions, according to data from the NSE and the BSE as of October 28.
The first-day borrowing comes weeks after a wave of retail margin-call liquidations cut India’s overall cash market margin trading book to 1.51 trillion rupees as of October 28 from a record 1.59 trillion rupees on September 30.
Dhiraj Relli, managing director and CEO of HDFC Securities, said Jio Platforms’ margin trading facility position amounts to just 0.17% of its total market cap.
Source: Reuters
