Paytm IPO Gets Moderate Response, 48% Shares Subscribed After Day 2

The mega IPO of fintech giant Paytm closed its second day with nearly half the total shares subscribed, largely on the back of retail subscriptions.

The offer of 4,83,89,422 shares has witnessed bids for 2,34,63,600 (0.48 times or 48%).

Dubbed as India’ largest IPO, Paytm’s public offering has witnessed a slow pickup in demand mostly from the institutional and non institutional investors, compared to other new age companies listed this year. The offers of foodtech giant Zomato and online lifestyle marketplace Nykaa were oversubscribed on day 1 and subscribed nearly 5 times at the end of the Day 2.

However, the slow pace could be attributed to the sheer size of the offer at INR 18,300 Cr.

Overall, at the end of day 2 of Paytm IPO:

• Retail Individual Investors (RIIs) have placed bids for 1,08,16,986 shares, against the offer of 87,98,076 shares, thereby subscribing the allotted portion by 1.23 times
• Although institutional buyers gathered momentum today, they are yet to show emphatic demand for the offer. Qualified Institutional Buyers (QIBs) have booked 1,20,08,328 shares (0.46 times) of the allocated portion of 2,63,94,231 shares.
• The corporates and individual investors (other than retail investors), clubbed as Non Institutional Investors are yet to pitch in with their bids. They have booked only 6,38,286 shares out of the 1,31,97,115 shares put aside, thereby subscribing the portion on just 0.05 time.

The anchor round of Paytm on November 3rd, attracted robust investor interest with INR 8,235 Cr ($1.1 Bn) in infusion from anchor investors, making it the largest anchor round in India. The anchor round was oversubscribed 10 times.

The IPO of One 97 Communications, which runs the fintech major, will close on Wednesday (November 10th).