From mint · · 2m
Jio Platforms IPO Fully Subscribed
Jio Platforms IPO clocks ~3 times subscription on Day 1 itself.
In brief
Jio Platforms IPO clocks ~3 times subscription on Day 1 itself. Jio Platforms IPO fully subscribed within 100 minutes, valuing the company at $107 billion with 3x subscription on Day 1. Originally reported by mint.
Jio Platforms IPO Fully Subscribed
Jio Platforms IPO clocks ~3 times subscription on Day 1 itself.
IPO Fully Subscribed in 100 Minutes
The IPO was fully subscribed within 100 minutes, with qualified institutional investors subscribing over seven times.
Record Subscription Rate
Retail investors took up 68% of their allocation, while wealthy investors bid for 1.51 times shares reserved for them.
IPO Valuation
Jio Platforms seeks to raise $3.1 billion, valuing the company at $107 billion at the top end of the price band.
Foreign Inflows Boost Rupee
Foreign inflows into the IPO boosted the rupee to a six-week high, climbing 0.5% to its highest since Sept. 7.
Jio's Market Position
Jio leads in wireless and fixed broadband markets with over 500 million subscribers but lags in ARPU compared to Bharti Airtel.
ARPU and Profit Comparison
Bharti reported an ARPU of 264 rupees for the quarter ended June, compared with Jio's 216 rupees.
Valuation Metrics
Jio is valued at 33.2 times trailing earnings versus Bharti’s nearly 37 times, with a premium based on enterprise value-to-Ebitda.
Jio's Strategy
Jio's strategy of pruning low-value customers to focus on high-paying users has been in place for seven years.
Historic IPO Impact
Jio's IPO marks Ambani's return to the IPO market after 20 years, with a focus on unlocking value for Reliance Industries.
Market Reaction
Analysts note Jio's potential for growth in satellite communications, digital services, AI, and other technology-led businesses.
Jio's Future Plans
Jio plans to pre-pay a substantial chunk of its debt with IPO funds, strengthening its balance sheet for competition with Starlink.
Upcoming Mobile Tariff Hike
The much-awaited hike in mobile tariffs is expected to provide a kicker to Jio's earnings.
The takeaway
Jio Platforms IPO fully subscribed within 100 minutes, valuing the company at $107 billion with 3x subscription on Day 1.
