Jio Platforms’ Rs 30,188 crore IPO drew Rs 2.5 lakh crore in anchor bids from over 70 investors. A banker said, "We are seeing an aggregate institutional demand of about Rs 2.5 lakh crore, more than 30 times the anchor book's size." This massive interest signals a record-breaking start for Jio.
Jio Platforms' Rs 30,188 crore IPO has attracted institutional bids worth around Rs 2.5 lakh crore, more than 30 times the size of its anchor book. Over 70 investors, including global asset managers, sovereign wealth funds, domestic mutual funds and insurers, have expressed interest ahead of the October 21 opening.
Mumbai: Jio Platforms has received bids from more than 70 institutional investors, potentially giving its Rs 30,188 crore initial public offering (IPO) one of the largest anchor investor lists globally.
Large foreign funds, sovereign wealth funds and domestic institutions have shown interest in buying $750 million to more than $1 billion worth of Jio Platforms shares each, far exceeding the allocations available in its roughly $854 million IPO anchor book, according to sources.
Bankers are expected to balance sizable allocations to major institutions with smaller allotments to a wider pool of investors. Most top-tier funds could receive shares worth Rs 400-450 crore each, while smaller allocations could range from Rs 10-20 crore.
"We are seeing an aggregate institutional demand of about Rs 2.5 lakh crore, more than 30 times the anchor book's size. This is the first time institutional demand for an Indian IPO has crossed that level," one the bankers said.
Global asset managers participating include BlackRock, Capital Group, Fidelity, T. Rowe Price, Schroders, JPMorgan Asset Management, Franklin Templeton, Invesco and Janus Henderson.
Sovereign investors and state-backed investment managers in the book include
GIC, the Abu Dhabi Investment Authority, the Qatar Investment Authority and Norges Bank Investment Management.
Demand also came from 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.
Insurance and pension investors include
LIC, HDFC Life, SBI Life, SBI Pension, HDFC Pension and ICICI Prudential.
Foreign funds pursuing long-term investments, sovereign wealth funds and pension funds accounted for the bulk of demand, according to the details. "Some long-term investors may buy additional shares in the open market after listing, given the limited allocations in the anchor book," one source said.
The IPO of Jio Platforms, the digital and telecom arm of billionaire Mukesh Ambani-led Reliance Industries, will surpass Hyundai Motor India's Rs 27,859 crore offering in 2024, which currently holds the record for India's biggest IPO. Last month, the National Stock Exchange (NSE) launched a Rs 22,562-crore IPO.
The Jio Platforms issue will open for subscription on Oct 21 and close on Oct 23.
The IPO comprises a fresh issue of up to 270 million equity shares, with no offer-for-sale (OFS) component. The company has reserved shares worth up to Rs 2,500 crore for eligible Reliance Industries shareholders and up to Rs 500 crore for eligible employees.