Paytm rides on FIIs to reach full subscription
NEW DELHI: Paytm’s ₹18,300crore initial public offer (IPO) was on Wednesday fully subscribed with FIIs flooding the issue with offers.
The initial public offering of Paytm’s parent company One97 Communications Ltd received bids for 5.24 crore equity shares against the offer size of 4.83 crore shares, according to information available from stock exchanges.
Qualified institutional buyers (QIBs), who were less than enthusiastic in participating in the IPO in the initial two days, flooded the issue, seeking 1.59 times the shares reserved for them.
Foreign institutional investors (FIIs) sought 4.17 crore shares as against 2.63 crore shares reserved for QIBs.
Retail investors lapped up for 1.46 times the 87 lakh shares reserved for them.
QIBs had the largest number of shares reserved for them at 2.63 crore. Against this, bids were received for 4.18 crore at 1326 hours on Wednesday, according to stock exchange information.
The portion set aside for retail investors has been subscribed 1.46 times with 1.28 crore shares being sought against a reservation of 87.98 lakh. Retail investors had the smallest portion reserved for them.
Non-institutional investors bid for just 8% of the 1.31 crore shares reserved for them.
The lacklustre response stood in sharp contrast to the strong demand for other Indian start-ups like food delivery firm Zomato and e-commerce beauty platform FSN E-Commerce Ventures (Nykaa), which investors snapped up during the issue period and saw stellar market debuts.
Loss-making Zomato’s issue was oversubscribed by more than 38 times and profitable Nykaa’s issue was oversubscribed by nearly 82 times at the end of their issue periods.
India has seen an IPO frenzy this year as investors ride a wave of liquidity that has taken domestic markets to record highs. Dozens of companies have tapped the capital market and some everyday brands like Oyo, Dehlivery and PolicyBazaar have sought stock exchange listings.
Paytm, which is backed by Ant Group, SoftBank’s Vision Fund and Berkshire Hathaway, has priced its issue at ₹2,080-2,150 per share, in what is expected to be India’s largest stock market listing, surging past miner Coal India’s ₹15,000 crore IPO more than a decade ago.