Jio IPO: Rs 8,110 crore anchor book draws LIC, global funds

Jio Platforms has raised nearly Rs 8,110 crore through an anchor allocation ahead of its public offering opening on October 21, Economic Times Markets reported, citing an exchange filing dated October 19. The Mukesh Ambani-led telecom and digital services company allotted 7.25 crore shares at Rs 1,119 each, the upper end of its IPO price band.

The allocation covered 212 institutional accounts and investment schemes, including those associated with Life Insurance Corporation of India, BlackRock, Fidelity, Singapore's GIC and Abu Dhabi Investment Authority. That count does not mean 212 separate investment firms: several managers participated through more than one fund or account.

Domestic mutual funds take over a third of the anchor book

A total of 95 domestic mutual fund schemes received 2.49 crore shares worth approximately Rs 2,785 crore, or 34.34% of the anchor allocation. Participating fund houses included 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.

Another 22 insurance company and pension fund accounts were allocated about Rs 1,090 crore, representing 13.44% of the anchor book. The insurers included HDFC Life, SBI Life, ICICI Prudential Life, Axis Max Life and Kotak Mahindra Life.

LIC was among the largest individual allottees, receiving 44.68 lakh shares valued at nearly Rs 500 crore. Its allocation accounted for 6.17% of the anchor portion.

Sovereign investors and overseas pension funds participate

New World Fund received an allocation of about Rs 486 crore, while BNP Paribas Financial Markets was allotted approximately Rs 303 crore. The Government of Singapore received 30.47 lakh shares worth nearly Rs 341 crore, and the Monetary Authority of Singapore received Rs 84 crore worth of shares.

Abu Dhabi Investment Authority participated through its Monsoon investment vehicle, securing about Rs 150 crore. BlackRock and Fidelity invested through multiple funds and accounts; the wider list also included Allianz Global Investors, Ninety One, JPMorgan, Schroders, Capital Group, Florida Retirement System and California State Teachers' Retirement System.

The report placed this overseas institutional participation against a backdrop of foreign portfolio outflows from Indian equities, amid concerns about US bond yields, crude oil prices and currency volatility.

Fresh-share issue targets Rs 30,213 crore

Public subscription is scheduled to run from October 21 to October 23. The offering comprises up to 27 crore fresh equity shares, with no offer-for-sale component. Proceeds from fresh shares go to the company rather than to existing shareholders selling their holdings.

The proposed fundraise ranges from Rs 28,755 crore at the bottom of the price band to Rs 30,213 crore at the top. At the upper-end issue size, it would surpass Hyundai Motor India's Rs 27,900 crore offering in 2024 to become India's largest IPO.

At Rs 1,119 a share, Jio Platforms is seeking an equity valuation of approximately Rs 10.3 lakh crore. That is the valuation sought through the offering, not an established post-listing market value.

The nearly Rs 8,110 crore anchor allocation is distinct from earlier reports of institutional bids approaching Rs 2.5 lakh crore. The larger figure described bidding interest, not funds actually raised.