Jio Platforms Ltd's landmark IPO has triggered an aggressive financing push across India's brokerage industry. SBI Securities, leveraging its parent State Bank of India, now offers up to 60% financing for IPO applications ranging from 500,000 to 1 million rupees. Several firms are approaching clients with financing options to cash in on the frenzied interest.
The $3.2 billion offering opened for subscription on Oct. 21 and closes on Oct. 23, aiming to raise up to 302 billion rupees at a valuation of 10.3 trillion rupees. The IPO was fully sold out within the first two hours of bidding and was subscribed nearly three times on the first day. Qualified institutional investors subscribed the portion nine times, while wealthy investors bid 1.55 times their reserved allocation and retail investors took up about 67%.
The entire industry is latching onto Jio's allure to attract new customers and open securities accounts. Firms expect the excitement could bring as many as 5 million new investors into the market in October, potentially creating a fresh pool of long-term traders. HDFC Sky, Groww and Zerodha have introduced pre-booking features allowing customers to register interest before bidding began.
Angel One Ltd. is targeting Reliance group employees and their family members without securities accounts. For India's brokerage industry, Jio represents a rare customer-acquisition opportunity, potentially mirroring the 2022 LIC listing milestone where 286 million policy holders gained easy access to brokerage accounts.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing