Jio IPO Draws $25 Billion in Anchor Investor Bids

Institutional investors bid about $25 billion for Jio Platforms shares, nearly 30 times the amount set aside for anchor buyers, according to two people familiar with the matter. Singapore’s GIC, BlackRock and Fidelity were among the bidders as the company opened this part of its record IPO on Monday. The strong demand offers an early measure of investor interest before public applications begin. ⁵

Anchor bidding came ahead of Jio Platforms’ public offer, which runs from October 21 to 23. The company, part of Reliance Industries, is selling newly issued shares worth up to ₹30,213 crore, with no current shareholders selling stock. Jio grew from a telecom service launched in 2016 with cheap data and free calls into a business spanning mobile service, broadband, entertainment, cloud and business technology. It now serves more than 500 million customers. ^5,9

More than 500 million customers help explain the appeal, but investors must judge what that reach is worth and whether Jio can grow beyond telecom. The company is valued at about $108.3 billion at the top of its price range. It plans to use up to ₹27,500 crore of the proceeds to repay or pay down debt at its telecom unit. If the offer succeeds, the shares could make Jio one of India’s four largest listed companies by market value. ^5,11

The planned debt repayment links the IPO’s headline demand to a clear change in Jio’s finances, while the final share price will show what investors are willing to pay. The anchor bidding reported Monday was separate from public subscriptions, which have yet to open. Retail and other public investors can apply from October 21 through October 23, with listing set for October 28. ^5,12