Jio Platforms raises over Rs 8,100 crore from anchor investors as record IPO opens Wednesday
Anchor shares were allotted at the top of the price band ahead of the public issue of about Rs 30,213 crore, which runs from October 21 to 23.
Jio Platforms, the digital and telecom arm of Reliance Industries, raised about Rs 8,110 crore from anchor investors on Monday, a day before Indian markets shut for Dussehra and two days before its initial public offering opens to the public.
The company allotted roughly 7.25 crore shares to anchor investors at Rs 1,119 each, the upper end of its Rs 1,065 to Rs 1,119 price band, according to its filing.
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Who came in
Domestic mutual funds took more than a third of the anchor book, with houses such as HDFC, ICICI Prudential, SBI and Kotak among the participants. Insurers including LIC also took part. Global names reported in the anchor round include BlackRock, the Abu Dhabi Investment Authority and the Government of Singapore.
Reuters, citing people familiar with the matter, reported that the anchor portion drew more than $25 billion of demand. The company has not confirmed that figure.
The issue
The IPO is entirely a fresh issue of up to 27 crore shares, with no existing shareholders selling. At the upper end of the band it would raise about Rs 30,213 crore, which Reuters describes as a record for India, and value the company at roughly Rs 10.3 lakh crore. Reuters reported that most of the money is earmarked for paying down debt at Reliance Jio Infocomm.
The issue opens on Wednesday, October 21, and closes on Friday, October 23. The minimum bid is 12 shares, with portions set aside for eligible employees and for public shareholders of Reliance Industries. Listing on the BSE and NSE is expected towards the end of the month.
Market backdrop
The anchor round came on a weak day for stocks. The Sensex fell 876 points, or 1.17 per cent, to close at about 73,853 on Monday, while the Nifty 50 lost 257 points to 22,889, as private banks and IT companies came under selling pressure after quarterly results. Markets are closed on Tuesday and resume trading on Wednesday.
This article is for information only and is not investment advice.
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