Jio Platforms IPO fully subscribed in 100 mins; booked 3.16x on Day 1

Jio Platforms, India’s largest wireless operator and digital services provider and a unit of Reliance Industries (RIL), made a record as it drew strong demand on the first day of its initial public offering (IPO). While the issue subscribed 3.16x overall on the first day, it crossed the full-subscription mark in less than 100 minutes after opening at 9 am. Qualified institutional buyers (QIBs) led demand for the RIL subsidiary, subscribing 9.42x their reserved quota.

Non-institutional investors (NIIs) subscribed 1.68x, followed by existing shareholders at 1.46x and employees at 1.36x. Retail investors subscribed 0.73x their quota. The early subscription was made possible by an exception granted to the company and the National Stock Exchange (NSE) in view of the size of the issue, according to people familiar with the matter.

“It’s a landmark moment for the primary market, especially given the size of the issue,” said Pranav Haldea, managing director of Prime Database. QIBs bid for 461.5 million shares against the 49 million reserved for them. Foreign institutional investors placed bids for 161.8 million shares, while domestic financial institutions, including banks and insurers, bid for 259.2 million shares.

Mutual funds bid for 31.9 million shares. QIBs are among the most informed investors in the market, and they typically place their bids towards the end of the IPO subscription period, often on Day 3. It is rare for them to commit so heavily on Day 1, but Jio Platforms is clearly an exception.

In the case of the NSE IPO, the QIB subscription stood at just 0.08x on Day 1 before rising to 12.68x by the final day. The strong QIB demand for Jio Platforms could perk up retail investor confidence. Listing gains are often associated with the level of oversubscription an IPO attracts, with higher subscription multiples generally indicating stronger demand.

However, oversubscription alone does not guarantee a higher listing price. “This is unprecedented demand from QIBs,” said Geetanjali Kedia, chief analyst at SP Tulsian Investment Advisory Services. She expects subscriptions on Thursday and Friday to remain strong, citing the size of the IPO, demand from anchor investors, Wednesday’s subscription figures, a strong marketing push, and Jio’s consumer brand.

Within the NII category, bids above ₹10 lakh were subscribed 1.83x, compared with 1.38x for the ₹2–10 lakh bracket. In the retail segment, investors bid for 61.7 million shares against the 85 million reserved for them, including bids for 56.4 million shares at the cut-off price. The retail bids collected a day-one record of ₹6,908 crore, with overall demand for the IPO at ₹3.20 trillion, according to sources familiar with the matter.

“There is no advantage that a retail investor gets by coming in on Day 1. Instead, he or she would rather wait until Day 3, see how the book is being built and then come in. I would not be surprised if this issue also gets oversubscribed by retail by the closing date,” Haldea added.

Shares of RIL rose 0.58 per cent to ₹1,209. Investors buying RIL shares also gain exposure to the value of Jio Platforms, Reliance Retail, the oil and chemicals businesses, and the new energy business. Some investors see the potential for further value unlocking at RIL following Jio Platforms’ listing.

Meanwhile, Paras Healthcare’s IPO, which opened on the same day, drew a muted response. Investors bid for 0.15x the shares on offer, according to NSE data. Retail investors subscribed 0.69x their quota, while NIIs subscribed 0.08x. QIBs bid for just 588 shares against the 6.59 million shares reserved for them, resulting in a negligible subscription multiple that rounded to 0.00x.