Jio IPO fully subscribed in just 100 minutes of opening
Jio IPO: Jio Platforms' $3.2 billion initial public offering (IPO) was fully subscribed within less than two hours of bidding opening on Wednesday, as investors rushed to participate in India's biggest-ever share sale. The offering is also the first IPO from billionaire Mukesh Ambani's Reliance group in two decades.According to a PTI report, the Jio IPO was fully subscribed within 100 minutes of its opening on October 21.The rapid subscription was notable because large IPOs in India often see a slow start, with institutional investors typically placing their bids closer to the closing deadline.
By comparison, the National Stock Exchange of India's share sale recently attracted subscriptions for just 42% of the shares on offer on its first day. Hyundai Motor India's IPO had received bids for only 18% of its offering on the opening day.Also Read | Jio IPO, India’s largest public issue, opens for subscription: Price band, GMP to brokerage views - top 10 things to knowJio IPOThe IPO is open to retail investors, employees and eligible Reliance shareholders.
The issue will close on Friday, with shares priced in a band of Rs 1,065 to Rs 1,119 apiece.Exchange data showed that institutional investors had bid for 3.25 times the shares reserved for them by Wednesday. Retail participation was lower at that stage, with individual investors applying for 0.22 times their reserved quota. Retail investors have been allocated around one-third of the total offering.The IPO values Jio Platforms at as much as $108.3 billion.
Once trading begins on October 28, the company could rank among India's largest listed companies by market capitalisation.Earlier this week, Jio Platforms allotted shares worth $853 million to domestic and international investors, including the Abu Dhabi Investment Authority and BlackRock. The anchor investor portion attracted bids exceeding $25 billion, according to a Reuters report.Backed by global investors such as Meta, Google's parent company Alphabet and other institutional investors, Jio Platforms houses India's largest telecom operator.
With more than 500 million subscribers, the business is the world's second-largest telecom operator within a single country, behind China Mobile.This is Reliance's first IPO since 2006. Jio Platforms' telecom business, led by Ambani's son Akash, began operations in 2016. Its strategy was built around the expectation that Indians would use the internet much more extensively if access became almost free.
By offering inexpensive data and free voice calls, Jio quickly gained market share from competitors such as Bharti Airtel and Vodafone Idea.You use AI every day. Now get your AI Quotient. Take the AIQ test.
