Jio Platforms IPO attracts high demand: retail quota exhausted, subscription reached 3.47 times on the second day

The Initial Public Offering (IPO) of Jio Platforms Limited demonstrated impressive demand on the second day of trading. The offering completely exhausted all participant categories, including retail investors and high-net-worth investors.

On the second day of the IPO, the retail category was subscribed 1.54 times more than expected. Previously, interest in the QIB category was 12.87 times, and in the NII category—5.64 times. Overall, the total demand for the IPO on the second day reached 5.39 times.

The total size of the Jio Platforms Limited IPO is 30,200 crore rupees, which is the amount the company plans to raise. However, as a result, the company received a total amount of 3.68 lakh crore rupees. Nevertheless, the company can only retain 30,200 crore rupees; the remaining amount will be returned to investors if the shares are not allocated.

Despite this, the high demand indicates significant investor enthusiasm for this IPO.

The Jio Platforms IPO was open for applications on October 21 and will close on October 23, Friday. Share allotment is scheduled for October 26, and the listing of shares on the NSE and BSE exchanges will take place on October 28.

The price band for the Jio Platforms IPO is set between 1,065 and 1,119 rupees per share. One lot consists of 12 shares, and in the retail category, each person must apply for one lot, with a minimum price of 13,428 rupees at the upper price limit. Within this issue, 4,694,836 shares are reserved for employees, offered at a discount of 54 rupees.

Jio Platforms IPO shares are showing good growth in the Grey Market. The current GMP is 243 rupees, allowing for a projection of Jio Platforms shares listing at up to 1,362 rupees, exceeding the upper price band of 1,119 rupees. This means investors could receive a premium of 21.72% on this IPO.

The IPO of Jio Platforms, owned by Mukesh Ambani, is open to investors who can apply until October 23. On Wednesday, the opening day, the IPO received a very strong response from investors, making it the fastest-subscribed mega-IPO.

The qualified institutional buyer (QIB) category played the biggest role in this. The IPO was fully subscribed in just 100 minutes, at which point the QIB category had achieved more than triple subscription, and this figure continued to rise. By noon, at 3:30 PM, the category reached a subscription rate of 8.01 times.

Thanks to this rapid full subscription, the Jio Platforms IPO set a historical record and entered the list of the fastest-subscribed mega-IPOs launched in India to date. Previously, the largest IPO in India by issue price was Hyundai Motor India, with a volume of 27,870 crore rupees, but it yielded to Jio in terms of subscription metrics. Furthermore, the reaction to Mukesh Ambani's company IPO was significantly faster compared to the IPOs of Bajaj Housing Finance Limited and LG Electronics India Limited.

Regarding the first-day subscription, by approximately 3:30 PM, the QIB category was subscribed 8.01 times, while the NII category received a 1.41-fold subscription. The retail investor category showed a rate of 0.64 times. Employee quotas were also subscribed at 1.21 times, and shareholder quotas at 1.23 times.

The Jio Platforms IPO attracted funds amounting to 30,213 crore rupees in the primary market. The price band was set at 1065–1119 rupees, and the lot size is 12 shares. This offering does not include an Offer for Sale; instead, 270 million new shares are issued to investors.

The company plans to use up to 27,500 crore rupees of the raised funds to repay or prepay debts of its telecommunications subsidiary, Reliance Jio Infocomm. The remaining amount will be allocated to general corporate purposes.