Jio IPO: LIC, BlackRock, Fidelity, GIC among 212 anchor investors to pour Rs 8,110 crore

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The telecom and digital services company allotted 7.25 crore shares to anchor investors at Rs 1,119 apiece, the upper end of its IPO price band, according to an exchange filing on Monday.

The anchor allocation attracted several prominent global institutional investors alongside leading domestic mutual funds, insurance companies and pension funds. These included BNP Paribas, Allianz, JPMorgan, HDFC Mutual Fund, ICICI Prudential Mutual Fund, SBI Mutual Fund, Nippon India Mutual Fund and Kotak Mutual Fund.

Of the total anchor allocation, 95 domestic mutual fund schemes received 2.49 crore shares worth approximately Rs 2,785 crore, representing 34.34% of the anchor book. Another 22 insurance companies and pension fund accounts were allotted shares worth about Rs 1,090 crore, accounting for 13.44% of the total allocation.

LIC was among the largest individual anchor allottees, receiving 44.68 lakh shares worth nearly Rs 500 crore, representing 6.17% of the anchor portion. BNP Paribas Financial Markets received shares worth approximately Rs 303 crore, while New World Fund was allotted shares worth about Rs 486 crore.

The allocations were made ahead of Jio Platforms' public issue, which will open on October 21 and close on October 23. The offering is expected to surpass Hyundai Motor India's Rs 27,900 crore IPO in 2024 to become India's largest-ever public issue.

The Government of Singapore was allotted 30.47 lakh shares worth nearly Rs 341 crore, while the Monetary Authority of Singapore received shares worth Rs 84 crore. Abu Dhabi Investment Authority, through its Monsoon investment vehicle, secured an allocation of about Rs 150 crore.

Global asset managers BlackRock and Fidelity participated through multiple funds and investment accounts. The anchor list also included Allianz Global Investors, Ninety One, JPMorgan, Schroders, Capital Group, Florida Retirement System and California State Teachers' Retirement System.

The participation of overseas pension funds and sovereign investors comes at a time when foreign portfolio investors have been withdrawing money from Indian equities amid concerns over high US bond yields, elevated crude oil prices and currency volatility.

Among domestic institutions, the anchor allocation included schemes managed by HDFC Mutual Fund, ICICI Prudential Mutual Fund, SBI Mutual Fund, Nippon India Mutual Fund, Kotak Mutual Fund, Axis Mutual Fund, Aditya Birla Sun Life Mutual Fund and Mirae Asset Mutual Fund.

Insurance companies, including HDFC Life, SBI Life, ICICI Prudential Life, Axis Max Life and Kotak Mahindra Life, also featured in the allocation.

The 212 allottees represent individual institutional accounts and investment schemes, with several asset managers participating through multiple funds.

The final allocation establishes the amount Jio has raised from anchor investors, following earlier reports of institutional bids worth nearly Rs 2.5 lakh crore against the anchor book.

Jio Platforms' IPO comprises up to 27 crore fresh equity shares, with no offer-for-sale component. The company will raise Rs 28,755 crore at the lower end of the price band and Rs 30,213 crore at the upper end. At Rs 1,119 per share, the company is seeking an equity valuation of about Rs 10.3 lakh crore, making it one of India's most valuable businesses.

Disclosure: This article has been written by Podishetti Akash, who is not a SEBI-registered Research Analyst or an Investment Adviser. Podishetti Akash and his ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclosures here.