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BUSINESS & TRADE OCTOBER 30, 2026 | The Indian Eye 34

Can Jio’s record IPO revive

India’s battered stock market?

With more than one crore applications and institutional demand running high, the Reliance-backed offering

has captured investor attention, but rising crude prices and global uncertainty pose a bigger challenge

OUR BUREAU
Mumbai
he record-breaking initial public offering
(IPO) of Jio Platforms has emerged as a ma-
Tjor test of investor appetite in India, attracting
more than one crore applications even as domestic
equities struggle under pressure from rising crude oil
prices, weak global cues and concerns over valuations.
The offering, which has set a global record by
crossing the one-crore application mark, was sub-
scribed 7.83 times as bidding approached its close on
Friday, according to exchange data. Yet the enthu-
siasm surrounding the Reliance Industries-backed
digital platform contrasts sharply with the broader
market’s weakness, raising a key question: can one
of India’s most anticipated public offerings help re-
vive sentiment on Dalal Street?
The immediate response has been impressive.
Bids were received for around 154.62 crore shares
against 19.75 crore shares reserved for the issue,
according to the National Stock Exchange (NSE).
Jio Platforms became the first IPO globally to cross (L-R) Kotak Securities Chairperson Uday Kotak, Reliance Jio Infocomm Limited (RJIL) Non-Executive Director Isha Ambani and
one crore applications, surpassing the previous re-
ported record of around 97 lakh applications for the company’s Chairman Akash Ambani, and Jio Platforms CEO Pankaj Pawar at the Jio Platforms initial public offering (IPO)
Waaree Energies. announcement event in Mumbai (ANI photo)
The issue was fully subscribed within 100 minutes
of opening on October 21, reflecting strong initial index fell 2.98 per cent, while consumer durables de- were increasing concerns about India’s energy costs.
demand, particularly from institutional investors. Its clined 2.93 per cent and PSU banks lost 2.52 per cent. The resulting inflation worries were also pushing up
anchor allocation of Rs 8,110 crore had also attract- Vinod Nair, head of research at Geojit Invest- US bond yields and weighing on gold prices. “The
ed aggregate institutional demand exceeding Rs 2.5 ments, said the sharper correction in mid- and small- rupee held in a narrow band on Friday, opening 3
lakh crore, more than 30 times the amount on offer, cap stocks remained a particular concern. “The key paise firmer at 94.78 before softening toward 95.15
according to the company’s earlier announcement. concern in today’s market is the disproportionately to the dollar by afternoon,” Sharan said.
Qualified institutional buyers led the subscrip- sharp correction in mid- and small-caps relative to Nair also cautioned that near-term volatility
tion, bidding for 16.58 times the shares reserved the Nifty,” Nair said. “Valuation concerns and un- could persist, with the India VIX indicating contin-
for their category. Non-institutional investors sub- winding of leveraged positions, combined with surg- ued uncertainty. Global equity weakness, including
scribed 10.87 times, while retail individual investors ing crude prices and weak global cues, have inten- concerns surrounding artificial intelligence, and the
subscribed 2.18 times. The employee category was sified pressure on the broader market,” he added. possibility of elevated crude prices could further
subscribed 2.59 times and the shareholders’ catego- His assessment highlights the distinction be- constrain investor risk appetite.
ry 6.25 times. tween demand for a high-profile IPO and the under- Against this backdrop, Jio Platforms’ IPO of-
The breadth of demand suggests that Jio Plat- lying health of the stock market. While a marquee fers an important test of the depth of domestic
forms has attracted interest across investor groups, offering can draw fresh investor attention, it cannot investment demand. Its record application count
although institutional participation has been partic- by itself resolve concerns over stretched valuations, demonstrates the ability of a prominent corporate
ularly strong. The company fixed its IPO price band liquidity and the global economic environment. offering to attract widespread attention even during
at Rs 1,065 to Rs 1,119 per equity share, with a min- Rising oil prices are adding to those pressures. a difficult market phase. But oversubscription mea-
imum bid lot of 12 shares. Brent crude gained 1 per cent to USD 114.31 per sures demand for shares at the offer price; it does
However, the strength of the offering has yet barrel at the time of reporting, intensifying concerns not guarantee listing gains or a sustained improve-
to translate into a broader recovery in equities. On about India’s import bill, inflation and the rupee. ment in the wider market.
Friday, the Nifty 50 fell 87.65 points, or 0.39 per Rajeev Sharan, head of research at Brickwork For now, Jio’s record-breaking response offers
cent, to close at 22,600, while the Sensex declined Ratings, said the rupee weakened during the session a bright spot in an otherwise unsettled market. But
125.56 points, or 0.17 per cent, to settle at 73,123.83. after opening three paise firmer at 94.78 against the with crude prices climbing, the rupee under pres-
Selling pressure extended across most sectoral in- dollar, moving towards 95.15 by the afternoon. sure and mid- and small-cap stocks facing a sharp-
dices, with metals, consumer durables and public sector He attributed the pressure partly to rising er correction, the IPO’s success alone may not be
banks among the worst performers. The Nifty Metal Brent prices amid Middle East tanker strikes, which enough to reverse the prevailing mood.

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