IPO GMP, subscription race: Reliance Jio Platforms vs Paras Healthcare - Grey market premium, QIB, NII, Retail details
Reliance Jio Platforms and Paras Healthcare IPOs witnessed contrasting levels of investor demand, with the former attracting bids worth several lakh crore rupees and the latter closing its subscription with a more modest response. While Jio Platforms' IPO was subscribed 22.19 times, driven by strong institutional participation, Paras Healthcare's public issue was subscribed 2.23 times on the final day of bidding.
The grey market premium (GMP) also points to a sharp difference in listing expectations. Jio Platforms' IPO GMP stood at ₹250, implying a potential listing gain of around 22.34% over the upper end of its price band, while Paras Healthcare's GMP was ₹12, indicating a potential gain of 1.73%. Grey market premiums are unofficial indicators and do not guarantee listing performance.
The public issues opened on 21 October and conclude on 23 October, with allotment scheduled for tomorrow (26 October).
Here's a closer look at the subscription figures, investor categories and latest GMP trends for both IPOs.
Reliance Industries-backed Jio Platforms' IPO closed with bids for 22.19 times the shares on offer, as total demand across the public issue and anchor investor placement crossed ₹7.4 lakh crore. The offering also received nearly 1.39 crore applications, marking an unprecedented response to the digital services company.
By 7 PM on Friday, investors had bid for 438.3 crore shares against 19.75 crore shares on offer, according to exchange data. Bids for the public issue alone exceeded ₹4.9 lakh crore, excluding the anchor book, while retail demand crossed ₹25,867 crore.
Qualified institutional buyers (QIBs) led the subscription, bidding for 345.8 crore shares against 4.9 crore shares reserved for them. The category was subscribed 70.55 times. Within the QIB segment, domestic financial institutions, including banks, financial institutions and insurers, bid for 152.5 crore shares, while foreign institutional investors bid for 123.9 crore shares. Mutual funds bid for 35.7 crore shares.
The non-institutional investor (NII) category was subscribed 14 times, while retail individual investors subscribed 2.72 times their reserved portion. The shareholder reservation category was subscribed 7.60 times and the employee portion 2.93 times.
The combined demand figure represents the value of shares investors sought across the public issue and anchor placement, not the amount Jio Platforms will raise.
Jio Platforms IPO is a completely new issue of 27 crore shares. At the upper end of the price band it will raise approximately ₹30,213 crore and command a valuation of around $108 billion. Neither the parent company (Reliance Industries) nor any of its existing shareholders are participating in the offering.
Jio Platforms' IPO GMP stood at ₹250. Based on the upper end of the reported price band, the estimated listing price was ₹1,369 per share, implying a potential premium of 22.34% over the IPO price of ₹1,119.
Over the past 22 sessions, the GMP ranged between ₹148 and ₹273, with the latest premium indicating strong grey market listing expectations. However, GMP is an unofficial market indicator and can change before listing.
Paras Healthcare's IPO, which operates hospitals under the Paras Health brand, closed with an overall subscription of 2.23 times on Friday. Investors bid for 2,69,43,714 shares against 1,20,83,331 shares on offer, according to NSE data.
Unlike Jio Platforms, institutional demand was more moderate. The QIB category was subscribed 3.09 times, while retail investors subscribed 2 times their reserved portion. The NII category received bids for 66% of the shares on offer, leaving it undersubscribed.
Paras Healthcare raised ₹652.5 crore from anchor investors on Monday. Participants in the anchor book included Abu Dhabi Investment Authority, BlackRock and Eastspring Investments.
Paras Healthcare IPO has a fresh issue of equity shares of ₹500 crore and an offer for sale (OFS) of shares of ₹950 crore by promoter Dharminder Kumar Nagar and investor Commelina Ltd.
It's brought the issue size down from the original ₹1,800 crore.
Paras Healthcare's IPO GMP stood at ₹12. Based on the upper end of its price band, the estimated listing price was ₹705 per share, suggesting a potential gain of 1.73% over the IPO price of ₹693.
Over the past 12 sessions, the GMP fluctuated between ₹11 and ₹96. The latest premium indicates more modest listing expectations than those for Jio Platforms, although actual listing performance may differ from grey market indications.
Dhanya Nagasundaram works as a Content Producer at LiveMint, specializing in news related to financial markets, stocks, and business. With over eight years of experience in journalism and content creation, she has honed her skills in data-driven reporting and market analysis. Her focus is on monitoring stock trends, initial public offerings (IPOs), corporate news, policy shifts, and larger economic trends that affect investors and market players. <br><br> At LiveMint, Dhanya consistently writes and produces articles that make complex financial topics accessible to readers. She keeps a close eye on equity markets, commodities, and macroeconomic indicators, assisting audiences in comprehending how global and domestic events influence investment perspectives. Her stories frequently underscore emerging trends within sectors, the IPO market, company earnings results, and market strategies pertinent to both retail and institutional investors. <br><br> Before her tenure at LiveMint, Dhanya accumulated a wealth of professional experience at various companies, including MintGenie, Informist, Cogenics, Chary Publications, KPMG, and the Royal Bank of Scotland. These positions allowed her to establish a solid foundation in financial research, reporting, and content creation. <br><br> Throughout her career, she has explored numerous subjects such as trading strategies, commodities, IPOs, wealth generation, corporate profits, and macroeconomic indicators. Her background in both financial journalism and corporate settings has given her the ability to tackle stories with analytical rigor while ensuring clarity for her audience. Through her contributions, Dhanya strives to deliver insightful, trustworthy, and investor-centric financial content.
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