Jio Platforms and RPower: A tale of two blockbuster IPOs

Last week, Jio Platforms' IPO set numerous records in the Indian market, emerging as the largest IPO ever at ₹30,213 crore, surpassing Hyundai Motor India's ₹27,806 crore offering. The shares listed at ₹1,358 on both the NSE and BSE, offering a 21.36% premium to the issue price of ₹1,119, delivering the best listing gains among mega-IPOs.

Only LG Electronics India managed a better debut with a 50% return on its ₹11,607 crore IPO. This performance propelled Jio Platforms into the $100-billion valuation club, making it the second-most valuable company in the market, trailing only Reliance Industries. Led by Mukesh Ambani, Reliance Group claimed the top spot among corporate groups with a combined market capitalization of roughly ₹30 lakh crore, displacing the Tata group, valued at about ₹25 lakh crore.

Upon listing, Jio Platforms saw record-high bids of ₹7.4 lakh crore for the issue, drawing 1.34 crore applications. The IPO was fully subscribed within an hour, solidifying its position among the most anticipated listings in Indian market history. In contrast, Reliance Power's IPO, launched on February 11, 2008, and raising a record ₹11,563 crore, was also met with immense interest.

It attracted bids exceeding ₹7 lakh crore and was subscribed over 72 times, solidifying its position as one of the most anticipated IPOs in Indian history.

While the two companies share the same promoter lineage, the Dhirubhai Ambani family, and operate in sectors with significant growth potential, their IPO experiences differed significantly. Jio Platforms opened at ₹1,358, a 21.36% premium to the issue price, delivering the best debut gains. However, Reliance Power's IPO opened at ₹538, a 19% premium to its IPO price, but fell to ₹355 on the first day, closing at ₹372.50, leading to significant losses for investors.

Over the years, Reliance Power's shares have never traded above their ₹450 IPO price, whereas Jio Platforms has seen fluctuations but remains a strong performer. The management's response to investor concerns varied, with Reliance Power announcing a 3:5 bonus issue and filing a complaint about alleged market manipulation, which failed to assuage investor fears.