Bids for billionaire Mukesh Ambani’s first initial public offering (IPO) in 20 years exceeded $77 billion on Friday, surpassing the 2008 issue of Reliance Power, which is a part of his brother Anil’s firm, and making Jio Platforms India’s most subscribed stock offering.
At a time when AI-linked equities are under more scrutiny, the IPO of Ambani’s telecom and digital business is perceived as a test of investor enthusiasm for major listings.
During the Hindu holiday season, which is considered auspicious, Jio Platforms, whose mobile network covers over 500 million people in India, is conducting its initial public offering.
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When trading begins on Wednesday, Jio Platforms might rank among India’s largest corporations by market capitalization, with an IPO valuation of up to $108.3 billion.
Due to high demand from institutional and retail investors, employees, and shareholders, public subscriptions for the IPO exceeded 22 times the shares on offer.
Demand would have exceeded $51.5 billion if most offers were made close to the top of the price range, which is 1,119 rupees ($11.79).
In addition, anchor investors such as Fidelity, BlackRock, and Abu Dhabi Investment Authority bid a total of $25.6 billion for the $854 million worth of shares designated for them.
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The Jio Platforms IPO has got over 13.8 million applications, the highest number ever in India.
Approximately 9.4 million accounts were drawn to the $8.6 billion IPO of Chinese memory chip maker CXMT, which was Asia’s largest this year.
WealthMills Securities equities strategist Kranthi Bathini stated, “There is a lot of excitement and euphoria for the stock because this is the first Reliance IPO in a long time.”
Jio Platforms, headed by Mukesh Ambani’s eldest son, Akash Ambani, has Meta Platforms and Alphabet’s Google among its earliest and most enduring backers.
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Its share sale was fully covered within two hours of bidding opening on Wednesday, unlike the typical Indian IPO, where demand tends to build slowly, and big institutions usually hold off until the closing hours to bid.
Jio Platforms is a unit of Reliance Industries, which many Indian investors view as a reliable builder of long-term wealth. According to LSEG data, Reliance shares have gained roughly 900% since 2006, ahead of the 685% rise in the benchmark Nifty index.
Big investor interest.
Launched in 2016, Jio Platforms’ telecom arm upended the market by giving away voice and data, which hurt rivals Bharti Airtel and Vodafone Idea. Measured by subscribers in a single country, it now ranks behind only China Mobile.
When trading closed on Friday, the institutional portion of the IPO had been oversubscribed 70.55 times, a sign of heavy demand from big investors.
Retail investors covered their share 2.7 times, while employees and existing Reliance shareholders bid for 2.93 and 7.6 times the shares set aside for them, according to the data.
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Reliance was started by Dhirubhai Ambani, grandfather of Akash Ambani, who built a huge base of small investors in the 1980s through large shareholder meetings in Mumbai. The company says on its website that its 1977 listing helped bring equity investing to the Indian mainstream.
