Jio Platforms’ IPO has set new benchmarks for India’s primary market, not just in the size of the offering but also in investor participation. The ₹30,213-crore issue attracted a record 1.34 crore applications, becoming the first IPO to cross the one-crore mark, while drawing combined bids worth an estimated ₹7 lakh crore, including anchor investor demand.
India’s largest-ever initial public offering (IPO) was subscribed 20.38 times by the close of bidding on October 23, with investors bidding for 402.63 crore shares against 19.75 crore shares on offer, according to the final BSE data updated at 5:42 pm.
At the upper end of the price band of ₹1,119 per share, bids received during the public subscription period were worth approximately ₹4.51 lakh crore. Including nearly ₹2.5 lakh crore in anchor investor demand, the combined bids amounted to around ₹7 lakh crore.
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 company 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.
Demand accelerated on the final day. Overall subscription rose from 3.04 times on October 21, the first day of bidding, to 5.40 times on October 22, before climbing to 20.38 times on October 23. Qualified institutional buyers (QIBs) led the demand, with their portion subscribed 63.42 times at the close.
Institutional investors lead demand
QIBs placed bids for 310.79 crore shares worth approximately ₹3.48 lakh crore against 4.90 crore shares reserved for the category, translating into subscription of 63.42 times.
The non-institutional investor (NII) category received bids for 50.83 crore shares worth approximately ₹56,877 crore against 3.64 crore shares on offer, translating into subscription of 13.95 times. Within the NII category, the big NII segment, comprising bids above ₹10 lakh, received bids for 38.51 crore shares worth approximately ₹43,096 crore against 2.43 crore shares reserved, translating into subscription of 15.85 times. The small NII segment, comprising bids between ₹2 lakh and ₹10 lakh, received bids for 12.32 crore shares worth approximately ₹13,781 crore against 1.21 crore shares on offer, translating into subscription of 10.14 times.
The retail individual investor portion received bids for 22.79 crore shares worth approximately ₹25,499 crore against 8.50 crore shares reserved for the category, translating into subscription of 2.68 times. The employee portion received bids for 1.36 crore shares worth approximately ₹1,518 crore against 46.95 lakh shares on offer, translating into subscription of 2.89 times.
The shareholder reservation category received bids for 16.86 crore shares worth approximately ₹18,869 crore against 2.23 crore shares reserved, translating into subscription of 7.55 times.
Application-wise data showed that the retail category received around 1.01 crore applications against 70.86 lakh reserved applications, while the NII category received 9.57 lakh applications against 2.02 lakh reserved applications. Total applications across categories reached 1.34 crore.
Jio IPO GMP signals potential listing gain of 22.7%
The grey market premium (GMP) for Jio Platforms stood at ₹254 on October 23. At the upper end of the 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 sentiment in the unlisted market and does not guarantee the actual listing price or investor returns. The premium may change before listing.
Jio Platforms is raising ₹30,213 crore through the IPO, which would surpass Hyundai Motor India’s ₹27,856-crore issue in 2024 to become India’s largest public offering. The three-day issue opened on October 21 and closed on October 23, with the shares scheduled to list on October 28.