Paytm IPO has slow start, subscribed 18 per cent on Day 1
Paytm IPO has received a mixed response from analysts, with some calling it a good bet to ride India's fintech wave and others pointing at expensive pricing. It is expected to be the biggest since Coal India's IPO in 2010.
The initial public offer (IPO) of digital payments company Paytm opened to a slow start on Monday, the first day of the three-day window. The IPO was subscribed only 18 per cent.
The portion set aside for retail investors has been subscribed 78 per cent, while the reserved portion of non-institutional investors was subscribed 2 per cent, and qualified institutional buyers have put in bids for 16.78 lakh shares against 2.63 crore shares set aside for them.
Share allotment is likely to take place on November 15, and the shares are expected to be listed on November 18.
The Paytm IPO has received a mixed response from analysts, with some calling it a good bet to ride India's fintech wave and others pointing at expensive pricing.
Other IPOs that received stronger demand from the investors on their opening days were that of Nykaa and food delivery firm Zomato. However, the issue size was much smaller compared to Paytm's share sales.
One97 Communications Ltd, the parent company of Paytm, is offering 4.83 crore shares in the $2.4 billion IPO that will close on November 10. On Monday, it received bids for 88.23 lakh equity shares, according to information available from stock exchanges.
The Paytm IPO is touted to be the biggest after Coal India's offer in 2010. As far as this year's biggest IPO is concerned, Zomato held the title till now with its $1.3 billion (approximately ₹9,634 crore) share issue in July.
Paytm has priced its shares in a price band of ₹2,080-2,150 per share, valuing the company at ₹1.39 lakh crore at the upper end of the price band.
Paytm founder and chief executive officer (CEO) Vijay Shekhar Sharma visited the Tirumala Tirupati Temple in Andhra Pradesh on Monday to "seek blessing" as the IPO opened.
Sharma will offload his share worth up to $53.94 million ( ₹402.65 crore) in Paytm through the IPO, along with top investor Ant Financial.
Incorporated in 2000, One97 Communications is India's leading digital ecosystem for consumers and merchants. It offers a range of services to the users - payment services and financial services.