Jio IPO draws record ₹2.5 lakh crore anchor demand
What's the story
Jio Platforms' initial public offering (IPO) has witnessed an unprecedented institutional demand of around ₹2.5 lakh crore. The ₹8,110 crore anchor book of the issue, which opens on October 21, has been subscribed over 30 times by global asset managers and sovereign wealth funds. The response is a record for an Indian IPO and highlights the immense interest in Reliance Industries' digital businesses.
Investor participation
Global investors line up for Jio Platforms IPO
The anchor book of Jio Platforms' IPO has attracted a host of global investors including BlackRock, Capital Group, Fidelity, T. Rowe Price, Schroders, JPMorgan Asset Management, Franklin Templeton and Invesco.
Sovereign wealth funds such as GIC, Abu Dhabi Investment Authority (ADIA), Qatar Investment Authority (QIA) and Norges Bank Investment Management have also shown interest in the offering.
Local support
Domestic mutual funds, insurers also participate in record-setting offering
Jio Platforms' IPO has also got backing from domestic mutual funds, insurers and pension funds.
All of India's top 10 mutual funds including SBI Mutual Fund, ICICI Prudential Mutual Fund, HDFC Mutual Fund, Aditya Birla Sun Life Mutual Fund, Nippon India Mutual Fund and Kotak Mutual Fund are part of the anchor book.
Leading insurers such as LIC, HDFC Life and SBI Life have also participated in this record-setting offering.
Fund allocation
Everything to know about the Jio Platforms IPO
Jio Platforms' ₹30,200 crore IPO will open on October 21 and close on October 23. The price band has been fixed at ₹1,065 to ₹1,119 a share.
The issue consists of 27 crore shares and is completely a fresh issue with no offer for sale.
The company plans to use ₹27,500 crore of the proceeds to repay or prepay borrowings as part of its strategy for financial stability.
Market impact
Strong anchor demand likely to boost main book participation
At the upper end of the price band, Jio Platforms' post-issue market capitalization is estimated at ₹10.30 lakh crore.
The strong anchor demand is likely to drive participation in the main book and could spark renewed interest in Indian equities.
It also gives an early indication of institutional appetite for one of India's largest public offerings.