Jio Platforms and Paras Healthcare IPOs Open with Mixed Investor Demand

Two major public offerings opened for subscription on October 21, drawing very different responses from investors across the market.

Jio Platforms IPO

The 30,213 crore rupee initial public offering from Jio Platforms saw massive demand and was fully subscribed within just 100 minutes of opening on Wednesday. By 5 pm, the issue reached 3.01 times subscription after investors bid for 59.44 crore shares against 19.75 crore shares on offer. Qualified institutional buyers booked nine times their portion, while employee and shareholder categories saw 1.30 times and 1.38 times subscriptions. The retail portion reached 0.68 times with bids for 5.78 crore shares out of 8.50 crore shares reserved. Its grey market premium eased slightly to 246 rupees from 273 rupees, pointing to a possible listing price of 1,365 rupees per share and an estimated gain of 21.98 percent over the upper issue price of 1,119 rupees.

Paras Healthcare IPO

Paras Healthcare faced a much slower start with its 1,450 crore rupee public offering on the first day of bidding. The issue reached just 0.15 times subscription by the end of the day. Non-institutional investors booked 0.08 times their share, and qualified institutional buyers had not yet opened their category for bidding. Retail investors showed stronger interest by subscribing to 0.73 times their reserved portion. The grey market premium stood at 25 rupees according to Investorgain data, pointing to an estimated listing price of 718 rupees, which is 3.61 percent higher than the IPO price of 693 rupees.

Context

Initial public offerings allow private companies to raise funds from the public by selling shares on stock exchanges for the first time. The grey market premium is an unofficial indicator of how a share might perform when it officially lists for trading based on unlisted market demand.