The IPO has also drawn strong interest from retail investors because of the Reliance brand, which has a long-standing presence in Indian households. (Photo: Reuters)

Jio IPO rush continues on Day 2 as retail investors fully subscribe

Retail investors, who have around one-third of the issue reserved for them, fully subscribed to their portion within the first two hours of bidding on Thursday.

by · India Today

In Short

  • Jio Platforms IPO bids 3.64 times oversubscribed on day two
  • Retail portion fully subscribed within first two hours
  • Jio listing seen as key to Reliance's business expansion

Mukesh Ambani’s Jio Platforms IPO continued to attract strong investor interest on Thursday, the second day of bidding. The $3.2 billion public issue received bids for 3.64 times the shares on offer, while the portion reserved for retail investors was fully subscribed.

The IPO is set to become India’s largest public offering and marks Reliance’s first IPO in 20 years. It is also a key part of Ambani’s plan to expand Reliance Industries beyond its traditional oil and chemicals business into consumer, retail and technology services, Reuters reported.

INSTITUTIONAL INVESTORS LEAD JIO IPO DEMAND

Institutional investors have been driving demand for the Jio Platforms IPO. Data from stock exchanges showed that qualified institutional buyers (QIBs) bid for 9.42 times the shares reserved for them, reported Reuters.

Retail investors, who have around one-third of the issue reserved for them, fully subscribed to their portion within the first two hours of bidding on Thursday.

The IPO has also drawn strong interest from retail investors because of the Reliance brand, which has a long-standing presence in Indian households. An analyst tracking the issue said the demand reflects the trust investors place in Reliance, extending beyond Jio Platforms’ telecom business.

Reliance shares have been a long-term investment for many Indian families, with the company's Mumbai-listed stock rising around 330-fold since 1990.

Announcing the Jio listing in June, Ambani described it as “a deeply emotional moment for me, for the entire Reliance Family, and millions of its shareholders”.

JIO IPO GETS STRONG RESPONSE ON DAY 1

The public issue received a strong response on its opening day as well. The overall offering was subscribed within 90 minutes of the start of bidding, with institutional investors taking up their reserved portion within minutes.

Such a quick response is unusual for an IPO of this size in India, where investors often place most of their bids in the final hours of an offering.

The IPO values Jio Platforms at up to $108.3 billion. The company could become one of India's largest by market capitalisation when its shares begin trading on October 28.

- Ends