Paras Healthcare and Jio Platforms were the two big-ticket issues that hit the Indian primary market today, October 21, but it was the latter that stole the spotlight and remained in the headlines throughout the day.
The ₹30,213-crore initial public offering (IPO) of Jio Platforms received a bumper response from investors, as it was fully booked within hours of opening, reflecting encouraging demand from the Street.
The much-anticipated offering became the fastest among the country’s mega issues to achieve full subscription, reaching 100% booking within 100 minutes of opening on Wednesday.
Coincidentally, the last time the market witnessed similar enthusiasm was during the Reliance Power IPO, which was fully booked within a minute of opening in 2008.
Jio Platforms was subscribed 3.01 times by 5 p.m., with investors bidding for 59.44 crore shares against 19.75 crore shares on offer, according to exchange data.
Among investor categories, the qualified institutional buyers (QIB) portion was subscribed nine times. Domestic financial institutions, including banks and insurers, bid for 25.02 crore shares, while foreign institutional investors sought 15.14 crore shares. Mutual funds bid for 3.19 crore shares.
The retail investor segment remained undersubscribed at 0.68 times, with bids for 5.78 crore shares against 8.50 crore shares on offer. The employee and shareholder reservations were subscribed 1.30 times and 1.38 times, respectively.
The strong institutional response followed an equally robust anchor-investor book. Jio allotted shares worth about ₹8,110 crore to 212 anchor investors at ₹1,119 apiece on Monday. Demand for the anchor allocation exceeded ₹2.5 lakh crore, PTI reported, citing people familiar with the matter.
Jio Platforms, which is set to become the 13th publicly listed company under the Reliance group, is estimated to be valued at around ₹10.3 lakh crore at the upper end of its proposed IPO price band. The issue comprises an entirely fresh issue of up to 27 crore equity shares, with no offer-for-sale (OFS) component.
Paras Healthcare IPO sees muted demand on Day 1
The ₹1,450-crore initial public offering (IPO) of Paras Healthcare also opened for bidding today but witnessed muted demand. At the end of the day, the issue was subscribed just 0.15 times.
The issue saw a lack of demand from institutional investors, with the non-institutional investors (NII) portion subscribed just 0.08 times, while the qualified institutional buyers (QIB) portion had not yet opened for subscription. Retail investors showed relatively stronger interest, with their allocation subscribed 0.73 times, according to exchange data.
Ahead of the issue, the company raised ₹652.5 crore from anchor investors. The IPO comprises a fresh issue of equity shares worth ₹500 crore and an offer-for-sale (OFS) of shares worth ₹950 crore by the selling shareholder.
The Gurugram-based firm reduced the issue size from the ₹1,800 crore planned earlier. The company operates a network of eight hospitals under the Paras Health brand, with a presence across five states and one Union Territory.
Disclaimer: We advise investors to check with certified experts before making any investment decisions.
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