Daijiworld Media Network - Mumbai
Mumbai, Oct 24: Jio Platforms' Rs 30,213-crore initial public offering (IPO), India's largest-ever public issue, received an overwhelming response from investors, with the issue subscribed 22.19 times during its three-day subscription period that closed on October 23. The IPO attracted bids for 438.26 crore shares against 19.75 crore shares on offer, with institutional investors accounting for the bulk of the demand.
The public issue also created a global record by attracting more than 1.35 crore applications, becoming the first IPO worldwide to cross the one-crore application mark. The figure surpassed the previous record of around 97 lakh applications received by Waaree Energies and exceeded the application numbers of other major Indian IPOs, including Bajaj Housing Finance.
Qualified Institutional Buyers (QIBs) led the demand, subscribing to their reserved portion 70.55 times, with bids for 345.75 crore shares against approximately 4.90 crore shares allocated to the category. Non-Institutional Investors subscribed to their portion 14 times, while Retail Individual Investors subscribed 2.72 times. The portion reserved for eligible shareholders was subscribed 7.60 times, while the employee category received 2.93 times subscription, according to the reported final figures.
The IPO comprised an entirely fresh issue of 27 crore shares, with no offer for sale by existing shareholders. Jio Platforms had earlier raised approximately Rs 8,110 crore from 212 anchor investors on October 19, allotting shares at Rs 1,119 apiece, the upper end of the price band. The anchor book reportedly attracted bids exceeding Rs 2.5 lakh crore, reflecting substantial institutional interest. Investors included global asset managers and sovereign wealth funds such as BlackRock, Fidelity Investments, GIC and the Abu Dhabi Investment Authority.
According to the information provided in the IPO documents, Jio Platforms plans to use up to Rs 27,500 crore of the proceeds to repay borrowings of its wholly owned telecom subsidiary, Reliance Jio Infocomm Ltd. The remaining proceeds are intended to support growth-related capital expenditure and working capital requirements.
The IPO opened for subscription on October 21 and was fully subscribed within approximately 100 minutes on the first day, before witnessing a sharp surge in demand on the final day. The overall subscription reached 22.19 times by the close of bidding on October 23.
Investors are now awaiting the allotment of shares, which is expected to be finalised on October 26. Refunds and credit of shares to successful applicants' demat accounts are scheduled for October 27, while the stock is expected to list on the BSE and NSE on October 28.
Meanwhile, Jio Platforms' unlisted shares were reportedly trading at a grey market premium (GMP) of around Rs 242, according to the figures cited by market trackers. At the upper issue price of Rs 1,119, this would indicate an estimated listing price of around Rs 1,361, representing a premium of approximately 21.63 per cent.
However, the grey market premium is an unofficial indicator of investor sentiment and does not guarantee the actual listing price. The stock's eventual performance will depend on market conditions, investor demand and other factors when trading begins.