Paytm’s Rs 18,300 crore IPO subscribed 48% on the second day
Paytm’s Rs 18,300-crore IPO was subscribed 48 per cent on Tuesday, leaving one more day to bid for India’s biggest ever public offering. As per information available from stock exchanges, the initial public offering of Paytm’s parent company One97 Communications Limited received bids for 2.34 crore equity shares against an offer size of 4.83 crore shares.
While retail investors have enjoyed the offer, qualified institutional buyers including FIIs have shown less than enthusiastic participation so far.
The largest number of shares were reserved with the QIB at 2.63 crore. Against this, according to the information of the stock exchange, on Tuesday at 17.00, bids of 1.2 crore were received.
The portion set aside for retail investors is subscribed 1.23 times with 1.08 crore shares against the reservation of 87.98 lakh. Retail investors had the smallest share reserved for them.
Non-institutional investors bid for only 5 per cent of the 1.31 crore shares reserved for them.
On the first day on Monday, the IPO got 18% subscription. Prasad closes on Wednesday evenings.
Other tech IPOs such as Nykaa and Zomato Ltd received strong investor demand in their early days, but were much smaller than Paytm’s share sale.
Paytm has priced its shares in the price band of Rs 2,080-2,150 per share, putting the company at the upper end of the price band at Rs 1.39 lakh crore. The share sale will close on November 10.
The allotment of shares is likely to take place on November 15 and the shares are expected to be listed on November 18.
The offer includes fresh issue of equity shares worth Rs 8,300 crore and Offer for Sale (OFS) of shares up to Rs 10,000 crore.
OFS, or secondary share sale, involves the sale of shares by founder Vijay Shekhar Sharma up to Rs 402.65 crore.
The company has set aside an offer of 75 per cent for qualified institutional buyers, 15 per cent for non-institutional investors and the remaining 10 per cent for retail investors.
The record-setting IPO has received a mixed response from analysts, with some calling it a good bet to ride India’s fintech wave and others pointing to expensive prices.
At the upper end of the price band, Paytm is valued at 49.7 times FY11 revenue. Besides, it had negative cash flow for the last three financial years. It reported a loss of Rs 1,701 crore in FY11 on revenue of Rs 2,802 crore.
Incorporated in 2000, One97 Communications is India’s leading digital ecosystem for consumers and merchants. It provides users with a wide range of services – payment services and financial services.
The OFS includes shares worth Rs 4,704.43 crore offered by Antfin (Netherlands) Holdings, up to Rs 784.82 crore by Alibaba.com Singapore E-commerce, up to Rs 75.02 crore by Elevation Capital v FII Holdings, up to Rs 64.01 crore. by Elevation Capital V Limited, Rs 1,327.65 crore by SAIF III Mauritius, Rs 563.63 crore by SAIF Partners, Rs 1,689.03 crore by SVF Partners and Rs 301.77 crore by International Holdings.
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