In April 2006, retail investors in Reliance Petroleum's IPO paid Rupees 16 a share with their applications, according to Plastemart. The book was subscribed 51.22 times, according to data compiled by Chittorgarh, so most of that cash went back to applicants who received few or no shares. Between application and refund, the capital was simply locked up.
Bidders in Jio's IPO will not part with money upfront. The bid amount stays blocked in their bank account and is debited only on allotment, and for individual bids of up to Rupees 5 lakh the mandate is approved with a UPI PIN. Shares are due to list three working days after the issue closes.
