Investors pile into Ambani’s Jio IPO as bids top 10 times
As of Friday, the IPO’s institutional tranche was subscribed 26.5 times, reflecting strong demand from major investors, while the retail tranche was subscribed 2.3 times.
Indian billionaire Mukesh Ambani's first IPO in two decades saw subscription surge to 10 times on the final bidding day, as investors backed Jio Platforms' US$3.2 billion offering to tap India's telecom and digital sectors. Jio, the nation's largest IPO, is being closely watched amid heightened scrutiny of AI-linked stocks. The mobile network, serving over 500 million users, launched its IPO during the Hindu festive season, with public subscriptions exceeding 10 times the shares on offer.
Anchor investors, including Abu Dhabi Investment Authority, BlackRock, and Fidelity, bid over $25 billion for their reserved quota, with reserved shares garnering bids of more than $25 billion. The IPO values Jio Platforms at up to $108.3 billion, potentially making it one of India's biggest companies by market capitalization when trading begins on Oct 28.
Led by Ambani's eldest son, Akash Ambani, the IPO is backed by companies like Meta Platforms and Alphabet's Google. Jio's telecom business, launched in 2016, disrupted the market by offering free voice and data, leaving rival Bharti Airtel and Vodafone Idea in the dust. As of Friday, institutional and retail tranches were subscribed 26.5 times and 2.3 times, respectively, while employee and existing shareholder quotas were covered 2.7 times and 6.6 times.
Founded by Dhirubhai Ambani, Reliance Industries has cultivated a vast retail investor base through Mumbai's mass shareholder gatherings in the 1980s.
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