Delhi. The IPO of Jio Platforms, the digital unit of Reliance Industries, created a stir in the market as soon as it opened. This IPO, which opened on Wednesday, was completely subscribed in just 100 minutes. With this it became one of the first IPOs to get fully subscribed so quickly. The special thing was that institutional investors showed tremendous interest in it from the very beginning. The portion reserved for qualified institutional buyers (QIBs) was completely filled in just 10 minutes.
IPO completed in 100 minutes, strong demand from institutional investors
According to data available on the BSE website, Jio Platforms' Rs 30,213 crore IPO was fully subscribed within 100 minutes of opening. The price range of shares in the IPO has been kept at Rs 1,065 to Rs 1,119 per share. The portion reserved for institutional investors was filled first. In the first 10 minutes, bids were received equal to the available shares in the QIB category. After this the demand almost doubled in less than 30 minutes. As per available data, this category was subscribed 2.86 times.
Preparing to leave behind Hyundai Motor India's record
This IPO of Jio Platforms is important for the Indian stock market in terms of size. Through this issue of about Rs 30,213 crore, the company can leave behind the record of Hyundai Motor India's IPO of Rs 27,870 crore in 2024. Based on the upper price level of the IPO i.e. Rs 1,119 per share, the valuation of Jio Platforms comes to about $ 108 billion. Under this issue the company is issuing 27 crore new shares.
Existing shareholders are not selling their shares
An important thing about Jio Platforms' IPO is that it does not include an offer for sale (OFS). This means that the existing shareholders of the company are not exiting by selling their shares. Instead the company is raising capital by issuing new shares. Before the IPO, on Monday, the company had allotted shares worth about Rs 8,110 crore to 212 anchor investors at the rate of Rs 1,119 per share. According to sources, bids worth more than Rs 2.5 lakh crore were received against the shares reserved for anchor investors.
Jio eyes AI and cloud ahead of telecom
Jio Platforms Managing Director Akash Ambani has said that the company's future growth will not be limited to telecom services only. Expansion into technology, artificial intelligence (AI) and cloud sectors are key parts of the company's strategy. In an interview to PTI, Ambani said, “In Jio, it is not that we have to choose between the two. Our network is our technology.” The company's strategy indicates that it wants to use its telecom network and large customer base to grow its digital services and enterprise technology businesses.
Investors eye Jio's ability to increase earnings
Amid the initial demand for Jio Platforms' IPO, investors are also assessing how much additional revenue the company can generate from its huge customer base through digital services, AI and cloud. Simply adding new customers in the telecom sector is no longer the only basis for business growth. In such a situation, it will be important for the company to make the new digital business profitable. However, rapid subscription of the IPO does not guarantee future share price rise or investors getting profits. Before investing, it is important to understand the company's valuation, financial position, future plans and risks associated with the business.