Jio Platforms IPO Subscribed 5.57x on Day 2, QIBs Lead with 13.29x Bids

Jio Platforms' ₹30,213 crore initial public offering (IPO) was subscribed 5.57 times by the close of the second day of bidding on Thursday, signaling robust demand. Qualified institutional buyers (QIBs) led the subscription, bidding 13.29 times their reserved portion, an increase from 9.42 times on day one. This category bid for 651.5 million shares against 49 million reserved, with foreign institutional investors (FIIs) placing bids for 222.9 million shares, domestic financial institutions for 344.1 million, and mutual funds for 42.3 million shares.

Retail investors, while showing increased interest, remained the least-subscribed category at 1.54 times their quota, up from 0.73 times on Wednesday. They bid for 130.9 million shares against 85 million reserved. Other categories saw significant demand, with non-institutional investors (NIIs) subscribing 5.97 times (up from 1.68x), existing shareholders 4.04 times (up from 1.46x), and employees 2.10 times (up from 1.36x). Within the NII category, bids above ₹10 lakh were subscribed 6.76 times.

Prakarsh Gagdani, founder of Soaring Peaks Capital, noted that NII demand is nearly five times the retail subscription, partly because some retail investors are existing RIL shareholders bidding under that category. He added that the issue has drawn strong demand from QIBs, including asset management companies, indicating the demand for the IPO is not reducing. Sandeep Gupta, director at Valmiki Leela Capital, suggested that retail restraint might be due to the IPO being priced for quality at roughly 33x FY26 earnings and about 2.8x book, rather than for a quick listing-day premium.

The IPO emerged as one of the fastest in market history, becoming fully subscribed within 100 minutes of its 9 am opening on day one, reaching 3.16 times subscription by day's end. This rapid timeline was reportedly facilitated by a special exception granted due to the massive issue size. The strong QIB demand is considered exceptional, as these investors typically bid later in IPOs; for comparison, NSE's own IPO saw QIB subscription at 0.19x on day one, rising to 12.68x only on the final day.

Some investors consider Reliance Industries (RIL) a better avenue to gain exposure to Jio Platforms, as RIL offers diversification into Reliance Retail, oil and chemicals, and new energy businesses. RIL's stock closed down 2.03 percent at ₹1,184.50, near the upper end of JPL's price band of ₹1,119. Analysts anticipate a final surge from QIBs and large NIIs in the closing hours of day three, with retail and shareholder quotas typically coming in last, leading to a comfortable overall subscription. However, a large equity base and a market cap near ₹10.3 trillion suggest much of the good news is already priced in, potentially limiting day-one listing gains.

What to watch: The final subscription figures and post-listing performance, particularly for long-term investors tracking interest savings, ROCE, and capex discipline.

Editor's note: The draft accurately synthesizes the subscription data and context provided in the source text, correctly attributing expert commentary.