Jio Platforms IPO received massive interest for its anchor portion as the Reliance Industries Telecom arm has allotted shares worth Rs 8,109.85 crore to 212 anchor investors at the top end of its price band. According to an exchange filing, institutional demand for the offering exceeded Rs 2.5 lakh crore, more than 30 times the amount available in the anchor book.
The allotment of 7.24 crore shares at Rs 1,119 apiece comes ahead of the initial public offering that opens for public subscription on Wednesday, October 21. The week between October 19-october 23 is going to be a historic week in the history of India's equity market, as Jio Platforms IPO (initial public offering), which is the biggest-ever initial share sale, is all set to open for public subscription on October 21, Wednesday. Earlier, the digital and telecom arm of Reliance Industries announced a price band of Rs 1,065 to Rs 1,119 per share.
What Does Strong Anchor Demand Mean?
The strong demand underscores institutional investor interest, as both categories–Insurers and mutual funds exceeded the allocations reserved for them. The IPO earmarked 33.33 per cent of the anchor portion for mutual funds and 6.67 per cent for insurers and pension funds.
Also Read: Jio Platforms IPO GMP Soars 22%: Check Expected Listing Price, Potential Returns
Investor / Category | Allocation Amount | Details / Share |
|---|---|---|
Life Insurance Corporation of India | Rs 499.98 crore | 6.17% of anchor portion |
New World Fund Inc | Rs 486.27 crore | - |
Government of Singapore | Rs 340.93 crore | - |
SBI Focused Fund | Rs 315.00 crore | - |
BNP Paribas Financial Markets - ODI | Rs 303.25 crore | - |
Domestic Mutual Funds | Rs 2,784.96 crore | 34.34% of anchor book (2.489 crore shares across 95 schemes in 25 fund houses) |
Life Insurers and Pension Funds | Rs 1,089.95 crore | 13.44% of anchor book (97.4 lakh shares) |
Global Investment Firms Show Massive Interest
Global investment firms including BlackRock, Capital Group, Fidelity, T. Rowe Price, Schroders, JPMorgan Asset Management, Franklin Templeton and Janus Henderson were among those participating in the anchor book.
Additionally, Sovereign and public investment institutions like Abu Dhabi Investment Authority and the Monetary Authority of Singapore, and other also participated in the anchor portion.
Jio Platforms IPO GMP Today
The grey market premium of Jio Platforms declined a bit on Tuesday from 22% on Monday. Jio Platforms IPO GMP on October 20 stood at Rs 246--last updated at around 10:02 AM. The GMP shows an expected listing at Rs 1,365 per share, reflecting a potential premium of 21.98 per cent on debut against the upper price band of Rs 1,119 per share.