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Retail Portion Of Paytm IPO Subscribed 95% So Far

Retail Portion Of Paytm IPO Subscribed 95% So Far

At the end of Day 1, the INR 18,300 IPO was subscribed 18% or 0.18 times

The offer has opened at the price band of INR 2,085 - INR 2,150

The largest IPO in India’s history, will close on November 10th

As the mega IPO of One 97 Communications, the parent of Paytm enters the second day, the offer has been subscribed 34% so far.

As of 11.15 a.m, investors have placed bids for 1,63,24,944 shares (0.34 times) against the total of 4,83,89,422 shares on offer.

The offer opened on Monday (November 9th) at the price band of INR 2,085-2,150 per share.

  • Retail Individual Investors (RII) have shown interest in the offer, and are on course to fully subscribe their allocated shares. RIIs have subscribed 83,36,442 shares (95% or 0.95 times) out of the 87,98,076 shares allocated to them.
  • Demand from institutional investors picked up today and so far they have booked 29% of the earmarked portion. Out of the 2,63,94,231 shares allocated to Qualified Institutional Buyers (QIBs), 76,70,106 shares have been booked so far.
  • The Non-Institutional Investors (NII) are yet to place bids in large numbers. As of 11.15 a.m, they had bid for 3,18,942 shares, amounting to just 2% or 0.02 times of the 1,31,97,115 shares put aside. NIIs consist of corporates and individual investors (other than retail investors).

At the end of Day 1, the INR 18,300 IPO was subscribed 18% or 0.18 times.

Although the fintech giant’s public offer has witnessed decent interest from retail investors, the overall interest lagged compared to demand received by IPOs of some of the other tech-backed unicorns. Foodtech major Zomato and online lifestyle marketplace Nykaa had witnessed oversubscription in the first day of its offer. This could also be because of the size of Paytm’s IPO. 

The largest IPO in India’s history, will close on Wednesday (November 10th).

The offer includes a fresh issue of INR 8,300 Cr worth of shares and an offer for sale (OFS) of INR 10,000 Cr. The company has pegged its valuation at $19.5 Bn – $20 Bn. 

On Wednesday (November 3), Paytm raised INR 8,235 Cr ($1.1 Bn) from anchor investors in India’s largest anchor round. The anchor round was oversubscribed 10 times.