Norges Bank Investment Management (NBIM) was among the sovereign and government-backed investors in the anchor book of the Jio Platforms initial public offering (IPO), Business Today reported. Economic Times separately listed Norway’s Government Pension Fund Global among the overseas participants.
What happened
Jio Platforms, a Reliance Industries subsidiary, allotted 7,24,74,066 equity shares at ₹1,119 each to anchor investors, raising ₹8,109.85 crore, according to Business Today. An anchor investor is a large institution that is allotted shares just before an IPO opens to the public.
In all, 212 investors took part, including 25 domestic mutual fund houses, 22 life insurers and pension funds, and 85 global funds. Business Today also named the Monetary Authority of Singapore, the Government of Singapore and the Abu Dhabi Investment Authority as sovereign or government-backed investors alongside NBIM.
Institutional demand for the anchor portion was reported at more than ₹2.5 lakh crore, over 30 times what was on offer. You can read the full numbers in our anchor book coverage.
What it means for you
An anchor allotment does not change what a retail investor pays. The public issue had a price band of ₹1,065 to ₹1,119 per share, and anchors were allotted shares at the top end. The issue is a fresh issue of 27 crore shares with no offer-for-sale component, Business Today said.
Foreign institutions and sovereign funds in the anchor list show who was bidding before the public opened. It is not a signal of how the shares will trade after listing. Our IPO explainer covers how allotment and listing work.
Background
The public issue opened on Wednesday, 21 October, and bidding ended on Friday, 23 October. According to Business Today, the first day of trading on the NSE and BSE is planned for Wednesday, 28 October. For more on the company, see Jio Platforms: what it is and why its IPO is in the news.
