New Delhi . The IPO of Reliance Industries' telecom company Jio Platforms has created a new history by gaining immense popularity among investors. The company's IPO claims to have received more than 1.2 crore applications. This figure is said to be the highest for an IPO in the history of the Indian stock market. With this, the issue of Jio Platforms has become the world's first IPO which has received more than one crore applications. With this achievement the company has left behind the previous record of Waari Energies. Waari Energies' IPO had received around 97 lakh applications. This excellent response to Jio's IPO has clearly expressed the enthusiasm of investors about the company in the stock market.
The interest of investors was seen right from the beginning of the IPO of Jio Platforms. This issue, which opened on October 21, was fully subscribed within just two hours. About 30.5 lakh applications were received for the company's IPO on the first day. After this, by the end of the second day the number of applications increased to beyond 75 lakhs. On the third day, investor participation crossed the one crore mark. By the last day of the IPO, applications exceeded 1.2 crore. According to subscription data, the issue received total bids of more than 22 times. Bids were made for about 438 crore shares against 19.75 crore shares of the company. There was also strong demand in the qualified institutional buyers category with this portion being subscribed approximately 70 times.
The price band of this IPO of Jio Platforms was set at Rs 1065 to Rs 1119 per share. 12 shares were kept in one lot for investors. The company had planned to raise about Rs 30213 crore at the upper price band of the issue. Based on this, the valuation of the company was estimated at around $108 billion. One special thing about IPO is that Reliance Industries or other existing shareholders are not selling their stake in it. New shares have been issued in the issue as per details available.
Even before the IPO opened, big institutional investors had expressed confidence in Jio Platforms. The company had raised approximately Rs 8110 crore from 212 anchor investors on October 19. Shares were allotted to these investors at the rate of Rs 1119 per share. It was said that bids worth more than Rs 2.5 lakh crore were received in the category of anchor investors. It included large global investors such as BlackRock Fidelity Investments GIC and Abu Dhabi Investment Authority.
The company will use the funds raised from the IPO to pursue its business plans and strengthen its financial position. Jio Platforms plans to invest up to Rs 27,500 crore in repaying the debt of its wholly owned company Reliance Jio Infocomm. The remaining amount will be used to meet capital expenditure and working capital needs. Overall, this historic response to Jio Platforms' IPO reflects the increasing interest of investors towards large public issues in the Indian stock market. However, huge demand in IPO does not mean that profit from the share is certain after listing.