Jio Platforms Ltd.'s highly successful debut raised 302 billion rupees ($3.1 billion), attracting bids exceeding $78 billion and subscribing over 22 times. Its shares surged 27% on the first day, overtaking Bharti Airtel to become India's second-largest company by market value, exceeding $100 billion. This blockbuster performance has restored investor confidence, paving the way for more large offerings from India's biggest private firms.
Investment bankers note the strong demand shows investors are willing to commit significant capital to marquee deals despite a difficult equities backdrop. The successful test for regulatory changes allowing 2.5% equity dilution suggests more larger groups will follow suit. With a healthy pipeline of state-owned companies and new-age businesses, India's primary market is expected to remain active into 2027.
About 113 companies have received regulatory approval, and 115 have filed draft paperwork. Major potential listings include Phone Pe, Pernod Ricard India, and Flipkart, backed by Walmart. Billionaire Mukesh Ambani plans to eventually take Reliance Retail public.
Indian companies have raised about $18.26 billion through IPOs this year, approaching last year's record of $22.36 billion. The success of Jio's listing may encourage companies waiting on the sidelines to accelerate their plans, keeping India among the world's busiest markets for new share sales.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing