Today is last day to subscribe to Jio’s IPO:More than 6 times the bids received so far, returns of over 20% possible

Today, 23 October, is the last day to subscribe to the country’s biggest IPO, ‘Jio Platforms’. By 10 a.m., the IPO had been subscribed more than six times. Against the company’s 19.75 crore shares, bids have been received for 119 crore shares. The quota for institutional investors has been subscribed 13 times, while the retail portion has been subscribed 1.76 times. ₹8,110 crore raised through anchor portion beforehand Jio is raising a total of ₹30,213 crore through this IPO. However, just before the issue opened, the company raised ₹8,110 crore by issuing shares to anchor investors. After excluding the anchor quota, a net issue worth around ₹22,103 crore has been reserved for the general public and institutional buyers in the primary market, and it is continuing to receive bids. The issue was subscribed more than three times on the first day The IPO was subscribed 3.02 times on the first day itself, 21 October. Demand was received for 59.68 crore shares against the 19.75 crore shares on offer. At the start of the second day, heavy bidding by institutional investors pushed the figure past 3.50 times. At least ₹13,428 needed to invest in the IPO The price band for one Jio share is ₹1,065 to ₹1,119. Retail investors will have to invest at least ₹13,428 to buy the shares, while they can apply for a maximum of 14 lots, or 168 shares. This will require an investment of ₹1.87 lakh. Shares could be listed at ₹1,377 Before listing, the company’s shares have reached a premium of 23%, or ₹258 per share, in the grey market. Based on the grey market premium (GMP), the shares could be listed at ₹1,377 (₹1,119 + ₹258 = ₹1,377), compared with the upper price band of ₹1,119. Company to repay debt with funds raised The funds raised through this IPO will be used to repay the debt of the company’s main subsidiary, Reliance Jio Infocomm Limited (RJIL). The funds will also be used for general corporate purposes. After the issue, the shareholding of the promoter and promoter group will decline from 66.43% to 64.48%, while public shareholding will rise from 33.57% to 35.52%. Anchor book: The company’s ‘advance test’ Every IPO has a special quota reserved for large investors such as mutual funds, foreign investors and insurance companies. Shares are allotted to these large investors under the anchor book one day before the IPO opens to the general public. In simple terms, this is a kind of ‘advance test’ for the company’s IPO. When large and experienced investors invest substantial amounts in a company’s anchor book, it strengthens the company’s credibility and increases retail investors’ confidence in the IPO.