Upcoming IPOs: Jio Platforms, Paras Healthcare opening on October 21
What's the story
India's primary market is gearing up for a major week, with two companies looking to raise a combined ₹31,663 crore through initial public offerings (IPOs). The biggest of the lot is Jio Platforms, which will launch India's largest-ever public issue. The other company is Paras Healthcare. Both IPOs will open for subscription on October 21 and close on October 23.
IPO details
Jio Platforms's IPO details
Jio Platforms's IPO will open for subscription on October 21 and close on October 23.
The company has set a price band of ₹1,065-1,119 per share, with a minimum bid of 12 shares.
At the upper end of the price band, the minimum retail investment comes to ₹13,428.
The issue consists of 27 crore fresh equity shares and doesn't have an offer-for-sale component.
Subscription details
GMP, anchor book opening
The anchor investor book for Jio Platforms's IPO will open on October 19, ahead of the public issue on October 21.
The basis of allotment will be finalized on October 26 and shares are expected to list on October 28.
The company is currently trading at a healthy gray market premium of ₹220, which translates into roughly a 20% premium to the offer price.
Fund allocation
Reliance Jio to use net proceeds for debt repayment
Jio Platforms plans to use up to ₹27,500 crore of the net IPO proceeds to repay or prepay borrowings at its telecom subsidiary, Reliance Jio Infocomm.
Akash Ambani, Managing Director of Jio Platforms, recently said this debt reduction would help the company move toward becoming net debt-free.
At the upper price band, Reliance Jio is looking at a valuation of some ₹10.3 lakh crore.
Healthcare offering
Paras Healthcare's IPO details
Paras Healthcare's ₹1,450 crore IPO will also open for subscription on October 21 and close on October 23.
The company has set a price band of ₹660-693 per share.
Investors can bid for a minimum of 21 shares and in multiples thereafter, translating into a minimum retail investment of ₹14,553 at the upper end of the price band.