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Jio Platforms IPO closes 17.5 times subscribed at last count: institutions 52 times, retail 2.6 times
Bidding in the Jio Platforms share sale ended on Friday with the issue about 17.5 times subscribed at 4:38 pm, the last figure available. Institutions bid 52 times their quota and retail investors 2.6 times. Allotment is due on Monday and listing is planned for Wednesday.
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4 min
The Jio Platforms share sale ended on Friday, 23 October, with demand far above the shares on offer. By 4:38 pm, the last count available from NSE data, the issue was 17.54 times subscribed, and the final figure after the 5 pm close may be higher. The institutional portion was booked 52.26 times, the non-institutional portion 13.79 times and the retail portion 2.62 times.
Investors had bid for 3,46,53,74,592 shares, or about 346.5 crore, against the 19,75,25,934 shares open for bidding. At the top of the price band of Rs 1,119, that works out to about Rs 3.9 lakh crore of bids, a rough figure calculated from the share count and not one reported by the exchanges. The issue itself raises about Rs 30,200 crore.
The multiple climbed steadily as the issue went on. It was about 3 times on the first day and 5.40 times at the end of the second. On Friday it was 7.01 times at 12:12 pm, with institutions at about 14 times, non-institutional investors at 9.63 times and retail at 2.09 times, and 12.55 times by 3 pm, before reaching 17.54 times in the last hour. Sources differ by a point or so on the institutional figure at midday, which is normal for numbers taken from live feeds.
The late surge is typical of large issues, where institutions and big investors tend to place their bids close to the deadline. It also means that the day-2 gap between institutions and retail investors has grown: institutions are now about 20 times as oversubscribed as retail.
Why 19.75 crore shares, not 27 crore
The issue is a fresh issue of 27 crore shares, with no sale by existing shareholders. The number of shares in the public bidding is lower because anchor investors took about 7.25 crore shares at Rs 1,119 on 19 October, worth about Rs 8,110 crore, before the issue opened. That leaves 19.75 crore shares, which is the base on which the subscription multiples are worked out. A lot is 12 shares, and bids could be placed between Rs 1,065 and Rs 1,119 a share, so the smallest application was Rs 12,780 at the lower end.
The money is mainly meant to repay borrowings of the telecom operating company, Reliance Jio Infocomm, with the rest for general corporate purposes. Reports differ on the split, and the final figures are in the offer document.
What happens next
| Step | Date |
|---|---|
| Allotment finalised | Mon, 26 Oct |
| Refunds and shares credited | Tue, 27 Oct |
| Listing planned | Wed, 28 Oct |
Applicants can check their allotment from Monday. On the NSE website, they go to the page for checking IPO bids, choose the equity IPO option, pick the symbol JPL and enter a PAN or application number. On the registrar KFin Technologies' website, they select Jio Platforms and enter an application number, PAN or demat account number. Bids had to be in by 5 pm, and UPI mandates could be approved until 7 pm.
Retail investors, who had at least 35 per cent of the issue reserved, were 2.62 times subscribed. When a category is oversubscribed, shares are not given to everyone who applied, and the minimum lot is generally allotted by a draw, so some applicants will get nothing and their money will be refunded on Tuesday.
The grey market, an unofficial market in the shares before listing, quoted a premium of about Rs 240 to Rs 245 a share on Friday, around 22 per cent above the top of the band, which implies a listing price near Rs 1,360. It has eased from Rs 273 on 20 October but remains well above Rs 200. These quotes are informal, move through the day and do not predict the listing price.
The listing on 28 October is described as tentative. The company's debut will be read as a test of the market's appetite for very large offerings after a week in which the Sensex fell for four sessions in a row, with oil prices above $110 a barrel and talk of rate rises. Final category-wise figures will be published by the exchanges once the books have been reconciled.
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