What happened
Jio Platforms has allotted shares worth about ₹8,110 crore to 212 anchor investors ahead of its initial public offering (IPO), according to an exchange filing reported on Monday, 19 October. The shares were priced at ₹1,119 each, the upper end of the price band.
An anchor investor is a large institution that is allotted shares a day before the issue opens to the general public. Reports differ slightly on the share count: Economic Times reported 7.25 crore shares, while Mint reported 7.24 crore.
Who got what
- LIC: the largest allottee, with about ₹500 crore, or 6.17% of the anchor book, according to Economic Times, NDTV Profit and Mint.
- New World Fund: about ₹486 crore.
- Government of Singapore: about ₹341 crore. The Monetary Authority of Singapore received ₹84 crore, per Economic Times.
- BNP Paribas Financial Markets: about ₹303 crore.
- Abu Dhabi Investment Authority: about ₹150 crore, through its Monsoon vehicle, per Economic Times.
Domestic mutual fund schemes (95 schemes across 25 fund houses, per Mint) received shares worth about ₹2,785 crore, or 34.34% of the anchor book. Life insurers and pension funds were allotted about ₹1,090 crore, or 13.44%.
Global names in the list include BlackRock, Fidelity, JPMorgan, Capital Group, Schroders and Allianz Global Investors.
What it means for you
The anchor round sets how much Jio has raised before the public issue. It does not decide how the shares will trade after listing, and it is not a recommendation to apply.
If you plan to bid, the issue runs from 21 to 23 October. Check the price band of ₹1,065 to ₹1,119 and read the offer document. Our explainer on how an IPO works covers the basics.
Background
The IPO is a fresh issue of up to 27 crore shares, with no offer for sale. It aims to raise ₹28,755 crore at the lower end of the band and ₹30,213 crore at the upper end. Economic Times reported that this would top Hyundai Motor India’s ₹27,900 crore IPO of 2024 to become India’s largest.
At ₹1,119, the company seeks an equity valuation of about ₹10.3 lakh crore, which Mint put at roughly $108 billion. Mint reported that part of the proceeds will repay debt at its telecom subsidiary, with the rest for general corporate purposes. Reliance Industries will keep a majority stake after listing.
Economic Times noted that the overseas pension and sovereign participation comes as foreign portfolio investors have been pulling money out of Indian equities. For more, see Reliance’s outreach to staff as the Jio IPO opens.
