Today, October 23, is the last day to subscribe to the country’s biggest IPO ‘Jio Platforms’. By 10 am this IPO was filled more than 6 times. Bids have been received for 119 crore shares against 19.75 crore shares of the company. The quota for institutional investors has been subscribed 13 times and the retail portion has been subscribed 1.76 times. Jio, which has already raised ₹8,110 crore from the anchor portion, is raising a total of ₹30,213 crore through this IPO. However, just before the issue opened, the company had raised funds of ₹8,110 crore by issuing shares to anchor investors. After the removal of anchor quota, only a net issue of about ₹ 22,103 crore has been kept for the general public and institutional buyers in the primary market, on which bids are being received continuously. The issue was filled more than 3 times on the first day. The IPO was filled 3.02 times on the first day itself i.e. on 21st October. There was a demand for 59.68 crore shares instead of 19.75 crore shares. At the beginning of the second day, due to heavy bidding by institutional investors, this figure crossed 3.50 times. At least ₹ 13,428 will have to be invested in the IPO. The price of one share of Jio i.e. the price band is ₹ 1,065 to ₹ 1,119. A common investor will have to invest at least ₹ 13,428 to buy shares, while he can apply for a maximum of 14 lots i.e. 168 shares. This will cost Rs 1.87 lakh. Shares may be listed at Rs 1377. Before the listing, the company’s shares have reached a premium of 23% i.e. ₹ 258 per share in the gray market. According to Gray Market Premium i.e. GMP, its listing can be at ₹ 1377 (1119+258=₹ 1377) in terms of upper price band ₹ 1,119. The company will repay the loan with the amount raised. The amount received from this IPO will be used to pay the debts of the company’s main subsidiary, Reliance Jio Infocomm Limited (RJIL). Apart from this, funds will also be used for general corporate works. Post the issue, the promoter and promoter group stake will reduce from 66.43% to 64.48%, while public shareholding will increase from 33.57% to 35.52%. Anchor book i.e. ‘Advanced Test’ of the company is a special quota reserved for big investors like mutual funds, foreign investors and insurance companies in any IPO. Just a day before the IPO opens to the general public, shares are allotted to these big investors under the anchor book. In simple words, it is a kind of ‘advance test’ for the company’s IPO. When big and experienced investors invest huge money in the anchor book of a company, it strengthens the credibility of the company and also increases the confidence of retail investors in the IPO.
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Today is the last day of Jio’s IPO: More than 6 times bids received so far, can get returns of more than 20%.
