Jio IPO subscribed within 100 mins; subscribed over 3x on Day 1

MUMBAI: The maiden public offering for Jio Platforms was subscribed within 100 minutes of opening as institutional buyers led the charge. At close of the session on Day 1, the Rs 30,213-crore IPO, the biggest in India’s capital market history, was subscribed over three times, data from bourses showed.

The institutional (QIB) part of the IPO, in which a little over 4.9 crore shares were offered, was subscribed nearly 9.5 times while the high-net-worth investors’ portion, in which about 3.6 crore shares were reserved, was subscribed 1.7 times. Usually, in most initial offerings, institutional players apply on the last day of the offer.

Exchange data also showed that the portion reserved for employees was subscribed 1.4 times while the part reserved for Reliance Industries shareholders was subscribed 1.5 times. Only the retail part, in which about 8.5 crore shares are being offered, was not fully subscribed on Day 1.

This portion closed the opening day at a 70% subscription level. At the close of Day 1, the total demand for Jio shares was worth about Rs 3.2 lakh crore, including the anchor portion.

The strong response to the offering comes largely on the back of a Rs 2.5 lakh crore subscription to the anchor book, 30 times the book’s size of Rs 8,110 crore, disclosures by merchant bankers to the issue showed. In the IPO, Jio Platforms is offering 27 crore shares at a per-share price band of Rs 1,065 to Rs 1,119.

Of the total number of shares on offer, a little over 7.2 crore shares were offered to institutional buyers through the anchor book while a little over 19.7 crore shares are on offer through the bidding process. The bidding will close on Friday, Oct 23, and shares are expected to be listed on Oct 28.

Marquee global and domestic investors, aggregating 212, participated in the anchor part. The anchor book was led by a Rs 500-crore bid by domestic life insurance major Life Insurance Corporation.

Among the top global investors were BNP Paribas, which put in funds worth Rs 303 crore, and Black Rock, which, through six of its funds, put in Rs 128 crore. You use AI every day.

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