Key Takeaways
- Subscriptions for Jio Platforms' IPO exceed 13 times the shares on offer.
- The offering is part of Mukesh Ambani's Reliance Industries, valued at up to $108.3 billion.
- Strong demand from institutional and retail investors drives the record-breaking subscription.
Subscriptions for Jio Platforms' initial public offering (IPO) have surged, with applications topping 13 times the shares on offer, marking a significant milestone in India's stock market.
The offering, led by billionaire Mukesh Ambani, is the largest in India's history, with Jio Platforms valued at up to $108.3 billion, potentially making it one of India's biggest companies by market capitalisation.
The IPO, which opened on Wednesday, saw the institutional portion of the offering fully subscribed within two hours, a stark contrast to the gradual build-up seen in most Indian IPOs.
Strong demand from both institutional and retail investors, as well as employees and existing Reliance shareholders, has driven the record-breaking subscription. The retail tranche was covered 2.48 times, while bids for the employee and existing Reliance shareholder quotas reached 2.77 and 7.16 times the shares on offer, respectively.
The IPO is part of Reliance Industries, a company often seen by Indian investors as a long-term wealth generator. Reliance shares have returned around 900% since 2006, outperforming the benchmark Nifty index's 685% return.
Jio Platforms, led by Akash Ambani, has disrupted the Indian telecom market by offering free voice and data, significantly impacting rivals Bharti Airtel and Vodafone Idea. Today, Jio's 500 million-plus users are second only to China Mobile's.
The offering is being closely watched as a test of investor appetite for large listings when AI-linked stocks are facing increased scrutiny. The Jio IPO is launching during the auspicious Hindu festive season, adding to its appeal.
In contrast, the Chinese memory chip giant CXMT's $8.6 billion IPO, the biggest in Asia this year, attracted investments from around 9.4 million accounts, highlighting the varying levels of investor interest across markets.
This is a Reliance IPO after a long time, which is triggering a lot of exuberance and euphoria for the stock.
Kranthi Bathini, Equity Strategist at WealthMills Securities
