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Today has been recorded like a golden letter in the history of the Indian Stock Market because as soon as the mega IPO of the country’s largest telecom and technology giant Reliance Jio Platforms Ltd. opened for subscription, it performed so well beyond the expectations that it created a stir in the financial world of the country. The craze among investors about this IPO can be gauged from the fact that within just 100 minutes of its opening, the entire issue was 100 percent subscribed i.e. completely. Primary market experts and brokerage firms believe that this is a new and historic record in the history of the Indian stock market for any major public issue to achieve full subscription at such a fast pace.
This historic IPO of Jio Platforms, owned by Reliance Industries Limited (RIL), has a total value of a whopping Rs 30,213 crore, making it the largest IPO in the history of India. The company has fixed the price band for this public issue at Rs 1,065 to Rs 1,119 per share. There are 12 shares placed in one lot for investors, which means retail investors will have to invest at least a certain initial amount to apply. As soon as this mega offer started, there was an influx of bidders on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). The way institutional investors (QIBs), non-institutional investors (NIIs) and general retail investors made vigorous bids in the very first hour clearly showed that investors have unwavering faith in this powerful digital arm of Mukesh Ambani-led Reliance Group.
Qualified Institutional Buyers i.e. QIBs have played the biggest role in Jio’s IPO getting such a huge response in the first few minutes. In the very first round, many times more bids were registered in the QIB book than the fixed quota, making it clear that big mutual funds, insurance companies and foreign portfolio investors (FPIs) from India and abroad have expressed full confidence in it. Along with this, Jio’s popularity is also rising in the gray market (Grey Market Premium – GMP). In the unlisted and gray market circuits, Jio shares are trading at a huge premium of about 22 per cent over their fixed upper price band. If this trend of the current gray market continues till the day of listing, then investors are fully expected to get bumper profits on the very first day, which is a big relief and matter of enthusiasm amidst the sluggishness of the stock market.
In this mega IPO, special attention has been given to every category of investors, under which the company has also fixed a separate reservation quota for eligible Reliance Industries Limited shareholders (RIL Shareholders). Apart from this, provision of reserved share has also been made for the employees of the company, so that they can become a direct part of this historic journey. At least 35 percent of the net offer has been reserved for Retail Individual Investors, due to which the general public and small investors have also started applying in large numbers. Seeing this record-breaking response within the first few minutes, market analysts would not be wrong in saying that this IPO has the potential to break all the previous records of investment in the Indian stock market.
After the arrival of this IPO of Jio Platforms and its possible listing in the market, a major upheaval can be seen in the biggest battle of the corporate world. According to the reports of financial analysts, after the listing of Jio, Reliance Industries Group will come very close to leaving behind Tata Group in the race to become the most valuable group in the country. Jio alone is on the verge of becoming India’s fourth most valuable listed company, whose market cap is estimated to be higher than that of many leading banks and companies. This subscription window for investors will close in the coming days and its official stock market listing is considered to be fixed on October 28. The way this IPO has opened, it is clear that this enthusiasm of investors will create a new history in the market till the last day.