Paytm IPO Subscribed 18% On Day 1, Courtesy Retail Investors

• Retail individual investors (RII) subscribed to 78% of the earmarked shares
• The IPO of One 97 Communications, which runs Paytm, will close on November 10th
• The Delhi NCR based fintech company is eyeing a valuation of $19.5 Bn – $20 Bn

Paytm’s INR 18,300 IPO was subscribed 18% or 0.18 times on the first day of the offer largely backed by bids from retail individual investors (RII).

The largest initial public offer in India’s history, which is also the most awaited in recent times, has been under the clouds of valuation and profitability concerns, despite its sheer size.

Out of the 4,83,89,422 shares on offer in total, bids have come in for 88,23,924 shares.

• Retail individual investors (RII) subscribed to 78% of the earmarked shares and placed bids for 68,79,912 compared to 87,98,076 shares on offer.
• Institutional investors are yet to pitch in expected numbers. A total of 2,63,94,231 shares are allocated for the Qualified institutional buyers (QIBs), while bids have been placed for 16,78,788 shares (6% or 0.06 times).
• Non institutional investors (NII) have booked 2,65,224 equity shares (2% or 0.02 times), out of the allocated portion of 1,31,97,115 shares.

Given that the INR 18,300 Cr IPO is the largest in India so far, at nearly 80%, the retail subscription of Paytm IPO is the highest Day 1 record among IPOs with total retail tranche of more than INR 1,000 Cr.

Although the fintech giant’s public offer witnessed decent interest from retail investors, the overall interest lagged in comparison to demand received by IPOs of some of the other tech-backed unicorns. 

The IPO of FSN E-Commerce, which runs online lifestyle marketplace Nykaa was subscribed 1.55 times (155%) at the end of the first day of its offer. At the end of the first day, its retail portion was subscribed a massive 3.50 times.

Foodtech giant Zomato recorded a bumper listing with retail investors subscribing the issue 2.70 times at the end of day 1 (July 14), and the overall share sale was oversubscribed by 1.05 times.

The IPO of One 97 Communications, which runs Paytm, will close on 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.

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. 

The Delhi NCR based fintech company is eying a valuation of $19.5 Bn – $20 Bn. It was valued at $16 Bn when it raised $1 Bn from Ant Financials, SoftBank Vision Fund.