Jio Platforms IPO closes over 22 times subscribed as Sensex slips for fourth straight day

The initial public offering of Jio Platforms drew bids for more than 22 times the shares on offer by the close of its three-day subscription on Friday, even as benchmark indices fell for a fourth consecutive session on worries over crude oil prices.

Strong institutional demand

Exchange data compiled by brokerages showed the issue was subscribed about 22.19 times overall. The portion for qualified institutional buyers was booked about 70 times, while the non-institutional segment was subscribed 14 times and the retail portion about 2.7 times. The employee and shareholder quotas were also oversubscribed.

The roughly Rs 30,213-crore issue consists entirely of fresh shares, priced between Rs 1,065 and Rs 1,119 each. Most of the proceeds are earmarked for repaying borrowings at Reliance Jio Infocomm. Share allotment is expected to be finalised on October 26, with listing on the BSE and NSE tentatively scheduled for October 28.

Markets extend losses

On the secondary market, the Sensex fell 125.56 points, or 0.17 per cent, to 73,123.83, while the Nifty 50 lost 87.65 points, or 0.39 per cent, to end at 22,600. The broader market took a sharper hit: the Nifty Midcap 100 dropped 2.21 per cent and the Nifty Smallcap 100 fell 2.94 per cent.

Brent crude rose to around $114 a barrel amid continuing tension in West Asia. Metal, realty and PSU bank stocks were among the worst performers, while IT shares held up better. Shriram Finance, Adani Enterprises and JSW Steel were among the biggest Nifty losers. The India VIX volatility gauge rose more than 6 per cent.

Foreign institutional investors sold shares worth about Rs 3,459 crore on Thursday, while domestic institutions bought about Rs 2,891 crore, according to provisional data cited by Upstox. Analysts pointed to high valuations in smaller stocks, the unwinding of leveraged positions and the oil price surge as reasons for the selling.

Why it matters

India imports most of its crude oil, so sustained prices above $110 a barrel can raise fuel costs, widen the trade deficit and pressure the rupee. Strong demand for the Jio offering, however, suggests large investors remain willing to commit capital to major Indian listings despite the volatility.