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The people’s newsroom

EconomyIPO

Jio Platforms IPO ends 22 times subscribed as institutions bid 70 times their quota

India's largest share sale closed on Friday with a late surge of institutional money. Shares are due to be allotted on Monday and to start trading on Wednesday, 28 October.

From the editorial desk · MumbaiPublished
A JioPhone handset (file photo)
A JioPhone handset (file photo)Photo: Rahul Sharma / Wikimedia Commons, CC BY 3.0

Key points

  1. The ₹30,213 crore issue was subscribed 22.19 times by the close of bidding.
  2. Qualified institutional buyers bid 70.55 times the shares set aside for them; retail investors 2.72 times.
  3. Allotment is due on 26 October and listing on BSE and NSE on 28 October.

Jio Platforms’ share sale, the largest ever in India, closed on Friday with bids for 22.19 times the shares on offer, after big institutions piled in during the final hours.

Qualified institutional buyers, such as mutual funds, insurers and foreign funds, bid for 70.55 times the portion reserved for them. Non-institutional investors subscribed 14 times, with bids above ₹10 lakh at 15.89 times and smaller bids of ₹2 lakh to ₹10 lakh at 10.22 times. Retail investors, who could apply for up to ₹2 lakh, subscribed 2.72 times. The employee portion was taken up 2.93 times and the quota for Reliance Industries shareholders 7.6 times.

Demand rose sharply through the last day. The issue had been subscribed 5.51 times at the end of Thursday and 9.81 times by early Friday afternoon.

What happens next

The company is selling only new shares, at ₹1,065 to ₹1,119 each, to raise about ₹30,213 crore. Retail investors had to bid for at least 12 shares, or ₹13,428 at the top of the price band. The money is meant to prepay borrowings of its telecom arm, Reliance Jio Infocomm, and for general corporate purposes.

Shares are due to be allotted on Monday, 26 October, with refunds and credits to demat accounts on Tuesday. KFin Technologies is the registrar. Trading on BSE and NSE is expected to begin on Wednesday, 28 October.

With retail demand under three times the shares available, a fair number of small applicants can expect to receive shares. Before the issue opened, Jio Platforms had raised about ₹8,110 crore from anchor investors, who were allotted 7,24,74,066 shares at ₹1,119.