Jio’s mega IPO draws strong interest from global funds

Investors that have shown interest in the anchor book include the Government of Singapore Investment Corporation (GIC), Fidelity, Norway's Government Pension Fund Global, New World Fund Inc and Smallcap World Fund Inc, besides those cited above, the people said.

Domestic investors, including SBI Mutual Fund, Life Insurance Corporation of India, ICICI Prudential Mutual Fund, HDFC Mutual Fund and Kotak Mahindra Mutual Fund, are also among the potential bidders, they said. Emails sent to the lead bankers and to the company remained unanswered until the publication of this report.

The company has set a price band of ₹1,065-1,119 per share for the IPO. Investors will have to bid for a minimum of 12 shares and in multiples of 12 thereafter. Eligible employees applying under the employee reservation portion will receive a discount of ₹54 per share.

The IPO of Jio Platforms, the digital and telecom arm of Mukesh Ambani-led Reliance Industries, will surpass Hyundai Motor India's ₹27,859 crore offering in 2024, which currently holds the record for the country's biggest IPO. Last month, the National Stock Exchange launched a ₹22,562-crore IPO. The Jio Platforms issue will open for subscription on Oct 21 and close on Oct 23, while the anchor investor portion will open for bidding on Oct 19.

The IPO comprises a fresh issue of up to 270 million equity shares, with no offer-for-sale (OFS) component. The company has reserved shares worth up to Rs 2,500 crore for eligible RIL shareholders and up to Rs 500 crore for eligible employees.

Individuals and Hindu Undivided Families holding public shares of Reliance Industries as of October 14 will be eligible to apply under the shareholder reservation, subject to the conditions specified in the prospectus and applicable regulations. The employee reservation is for eligible Jio Platforms employees. The two categories together account for reservations worth up to Rs 3,000 crore.

Jio Platforms plans to use a part of the IPO proceeds to prepay up to Rs 27,500 crore of borrowings at its operating subsidiary, Reliance Jio Infocomm. The remaining proceeds will be used for general corporate purposes.