BENGALURU: In what seems like growing fatigue among IPO investors, the leading digital payments and financial services platform Paytm barely managed to get 1.89 times subscription for its initial public offer (IPO) on the last day of the bidding.
The subscription is far less than that of the other recently concluded IPOs. The share sale offer of beauty and wellness brand Nykaa got subscribed over 81 times, food delivery company Zomato 38 times and Paras Defence IPO, was subscribed a whopping 304 times.
The subscription data of Paytm indicates that bigger investors have not bid as aggressively compared to recent IPOs such as Nykaa and Zomato. However, experts say, that the Paytm IPO being much bigger in size -- Rs 18,300 crore compared to Nykaa’s (Rs 5,350 crore) and Zomato’s (Rs 9,375 crore)-- could have resulted in lower subscription.
On the other hand, Paytm’s IPO had secured the highest-ever retail subscription on the first day with investments in excess of Rs 1,000 crore. Also Paytm’s large issue meant that its retail size is much larger in absolute terms of value compared to Zomato and Nykaa.
When listed, Paytm will be one of the country’s most valued companies. The company is expected to list by November 18. Paytm will be heading to the markets with a $20 billion valuation.
As per exchanges data, on the final day of the bidding, Paytm IPO was oversubscribed 2.79x by QIBs and 1.66x by retail investors. A total of 9,14,09,844 Paytm shares have been bid for as opposed to the 4,83,89,422 shares available.
Earlier on November 3, Paytm had closed the largest anchor round and raised Rs 8,235 crore. Blue-chip global investors and tech-focussed funds have made their first-ever investment in Indian public markets through the Paytm IPO.
Driven by its payments and financial services offerings, Paytm’s revenue was up by 46% to Rs 9,480 million in Q1FY22, from Rs 6,494 million in Q1FY21. Paytm’s payments and financial services alone contribute to almost 80% of its revenue.
