Jio allotted over 7.2 Cr shares to anchor investors at ₹1,119 apiece, raising ₹8,109.8 Cr
More than a third of the round was picked up by 25 domestic mutual funds while a further 13.4% was subscribed by insurance companies and pension funds
The IPO, comprising a fresh issue of up to 27 Cr equity shares, will open for public subscription on October 21 and close on October 23
Ahead of opening its public issue on Wednesday (October 19), telecom major Jio Platforms has raised ₹8,109.8 Cr from anchor investors.
The company allotted 7.25 Cr equity shares to anchor investors at a price of ₹1,119 per share, the upper end of its price band.
Around 2.48 Cr shares, more than a third of the overall, were picked up by 25 domestic mutual funds via a total of 95 schemes. Domestic mutual funds that anchored Jio’s IPO were SBI Mutual Funds, HDFC Mutual Fund, ICICI Prudential Mutual Fund, Aditya Birla Sun Life Mutual Fund, Kotak Mahindra Mutual Fund, among others.
Besides, 97 Lakh equity shares (13.4% of the anchor round) were picked up by insurance companies and pension funds including Life Insurance Corporation of India, HDFC Life Insurance, SBI Life Insurance, and ICICI Prudential Life Insurance.
Global investors such as Fidelity, Allianz, BlackRock, Government of Singapore, Abu Dhabi Investment Authority, Goldman Sachs also picked up stakes in Jio ahead of its IPO.
Earlier in the day, it was reported that the anchor book has attracted demand of more than 30X its size. As per reports, Jio commands a grey market premium of ₹260, indicating a potential premium listing. The company is expected to get listed on the bourses on October 28.
The IPO, which comprises a fresh issue of up to 27 Cr equity shares, will open for public subscription on October 21 and close on October 23.
Jio is seeking to raise ₹30,213 Cr at the upper end of the price band, making it India’s largest public offering till date. This pricing would imply a valuation of ₹10.3 Lakh Cr for the telecom major.
The company expects to use the fresh capital generated from the IPO to reduce its subsidiary, Reliance Jio Infocomm Ltd’s (RJIL), net debt and interest burden, and improve its leverage.
The proposed repayment covers three external commercial borrowing (ECB) facilities worth a combined ₹29,971 Cr, secured from a consortium of Indian and international lenders, including SBI, Bank of America and First Abu Dhabi Bank.
The loans were originally raised to fund 5G infrastructure deployment and spectrum acquisition, with repayments scheduled between March and June 2028. Their interest rates range from 1.40% to 5.13% per annum.
The remaining proceeds earmarked for general corporate purposes may be used for strategic initiatives, growth opportunities, capital expenditure, working capital, marketing and other business requirements.
Jio Platforms reported a 9.2% YoY increase in consolidated net profit to ₹7,764 Cr in Q1 FY27, from ₹7,110 Cr a year earlier. Operating revenue rose 11.8% YoY and 2.4% QoQ to ₹39,173 Cr, while gross revenue grew 12% YoY to ₹45,961 Cr.
Source: Inc42
