Jio Platforms IPO draws ₹4.25 lakh crore in bids; subscription hits 9 times, crosses 1 crore applications

Jio Platforms Ltd’s ₹30,213-crore initial public offering (IPO) attracted bids worth around ₹4.25 lakh crore, including anchor investor demand, as the issue was subscribed nearly nine times on the final day of bidding on October 23. The offering also crossed the milestone of 1 crore applications, with total applications reaching 1.10 crore at the time of reporting.

The IPO received bids for 177.58 crore shares worth ₹1.76 lakh crore against 19.75 crore shares on offer, taking overall subscription to 9 times, according to data updated at 1:30 pm on the BSE. Demand was strongest among institutional and high-net-worth investors, while the retail portion was also subscribed more than two times.

Jio Platforms’ ₹8,110-crore anchor book, which opened on October 19, attracted bids worth nearly ₹2.5 lakh crore, translating into demand of more than 30 times the amount on offer. The digital services arm of Reliance Industries allotted 7.24 crore shares to 212 anchor investors at ₹1,119 apiece, the upper end of the price band of ₹1,065–₹1,119.

The IPO’s total demand of around ₹4.25 lakh crore includes anchor investor interest and bids received during the public issue. The ₹1.76 lakh crore figure represents bids received during the public subscription period, calculated at the upper end of the price band.

QIB portion subscribed 20.63 times

Qualified institutional buyers (QIBs) led demand, with their reserved portion subscribed 20.63 times. They placed bids for 101.09 crore shares against 4.90 crore shares on offer. Non-institutional investors (NIIs) bid for 42.19 crore shares against 3.64 crore shares reserved for the category, taking subscription to 11.58 times.

The retail individual investor portion was subscribed 2.22 times, with bids for 18.86 crore shares against 8.50 crore shares on offer. The employee reservation portion was subscribed 2.62 times, while the shareholder reservation category was subscribed 6.36 times.

The grey market premium (GMP) for Jio Platforms also rose to ₹254 per share on October 23. At the upper end of the IPO price band of ₹1,119, this implied an estimated listing price of ₹1,373, indicating a potential gain of 22.70% over the issue price.

The GMP is an unofficial indicator of investor sentiment in the unlisted market and does not guarantee the listing price or returns. The actual listing price could differ from the estimate.

Jio Platforms is seeking to raise ₹30,213 crore through the IPO, which would surpass Hyundai Motor India’s ₹27,856-crore offering in 2024 to become India’s largest public issue. The price band has been fixed at ₹1,065–₹1,119 per share. The three-day issue opened on October 21 and closes today, with the shares scheduled to list on October 28.

(DISCLAIMER: The views and opinions expressed by investment experts on fortuneindia.com are either their own or of their organisations, but not necessarily that of fortuneindia.com and its editorial team. Readers are advised to consult certified experts before taking investment decisions.)