Jio Platforms IPO Day 2: Bids cross ₹1 lakh crore; QIB portion crosses 10x subscription
Most brokerages who have covered the IPO, have issued a "subscribe" recommendation. Analysts are anticipating the stock to have a healthy stock market debut when it lists next week.
The Jio Platforms IPO continued to receive a strong response from the investor community with total bids now crossing the 1 lakh crore mark as bidding reached the halfway mark on the second day of India's largest IPO.India's largest IPO also became the fastest in history to reach full subscription for an issue of such a size. The first day had seen bids worth ₹70,000 crore being placed.With retail also now fully subscribed, all investor categories in the Jio Platforms IPO have now been fully subscribed.As per the latest update, the portion reserved for Qualified Institutional Bidders was subscribed 11.41 times, while the portion reserved for non-institutional investors was subscribed 4.97 times. The retail portion is now subscribed 1.42 times, with bids nearing ₹14,000 crore.
The portion reserved for employees and existing shareholders of Reliance Industries has also been subscribed 1.97 times and 3.56 times respectively as of 4 PM, according to NSE data.Overall, the Jio Platforms IPO has been subscribed 4.81 times so far on the second day of bidding.The ₹30,213 crore IPO is a complete fresh issue of shares with no Offer For Sale component, which means all the proceeds will flow on to the company's balance sheet. Majority of the proceeds are supposed to be used to pare down the company's existing debt.With this, the cumulative demand for the Jio Platforms IPO has now reached ₹3.5 lakh crore. The anchor book had already received bids worth ₹2.5 lakh crore, more than 30 times the original size.
It raised ₹8,110 crore through anchor investors before the issue opened for subscription.Most brokerages who have covered the IPO, have issued a "subscribe" recommendation. Analysts are anticipating the stock to have a healthy stock market debut when it lists next week.Jio Platforms' shares are currently commanding a Grey Market Premium of ₹243, which is a 22% premium over and above the upper end of the issue price of ₹1,119. It must be noted that the GMP rates in the unlisted market are speculative in nature and the actual listing price may differ compared to the GMP rates.The issue will close for subscription on Friday, October 23. Allotment of shares will take place on Monday, October 26, and the listing of the shares on BSE and NSE will take place on Wednesday, October 28.
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