Mutual Funds Receive ₹2,784.96 Crore in Jio Platforms Anchor Allocation

Key Takeaways

• Jio Platforms allotted ₹2,784.96 crore worth of shares to 25 domestic mutual funds through 95 schemes. 
• Mutual funds accounted for 34.34% of the company's ₹8,109.85 crore anchor investor allocation. 
• Jio allotted 7.24 crore shares to 212 anchor investors at ₹1,119 per share ahead of its public issue. 

Domestic mutual funds received shares worth ₹2,784.96 crore in Jio Platforms' anchor investor allocation ahead of the company's initial public offering. 

The allocation was made through 95 schemes belonging to 25 domestic mutual funds, which collectively received around 2.49 crore shares. Mutual funds represented 34.34% of Jio Platforms' overall anchor book. 

The overall anchor allocation stood at ₹8,109.85 crore. Jio Platforms IPO allotted approximately 7.24 crore shares to 212 anchor investors at ₹1,119 per share, the upper end of the IPO price band. 

Demand for the anchor book exceeded ₹2.5 lakh crore, more than 30 times the amount available in the anchor allocation, according to reports based on the company's exchange filing and institutional bidding data. 

Domestic fund houses participating in the allocation included SBI Mutual Fund, HDFC Mutual Fund, ICICI Prudential Mutual Fund, Aditya Birla Sun Life Mutual Fund, Nippon India Mutual Fund and Kotak Mahindra Mutual Fund. Moneycontrol reported that all of India's 10 largest mutual fund houses participated in the anchor process. 

SBI Focused Fund was among the largest individual mutual fund allocations, receiving shares valued at ₹315 crore. Life Insurance Corporation of India was the biggest anchor investor overall with an allocation worth ₹499.98 crore. 

The mutual fund allocation was slightly above the 33.33% of the anchor portion earmarked for mutual funds in the company's red herring prospectus. Domestic insurers and pension funds together received ₹1,089.95 crore, representing 13.44% of the anchor book. 

Jio Platforms opened its public issue for subscription on October 21. 

For the mutual fund industry, the anchor book represents a sizeable deployment into one of India's largest equity offerings, spread across a broad range of domestic schemes rather than being concentrated in a small number of funds.