Paytm IPO Subscribed 48% On Day 2
Investor demand remained muted on the second day of the initial public offering of One97 Communications Ltd.
Investor demand remained muted even on the second day of the initial public offering of One97 Communications Ltd., which runs the payments platform Paytm.
The IPO was subscribed 18% and 48% on day one and two, respectively, with the portions reserved for institutional and non-institutional investors witnessing little demand. The retail investor category subscribed fully on the second day.
The company is looking to raise Rs 18,300 crore through the IPO, making it the biggest maiden offer in Indian market history. The three-day offer, closing on Wednesday, has a price band of Rs 2,085-2,150 apiece.
The IPO is a fresh issue of shares worth Rs 8,300 crore and an offer-for-sale by existing shareholders worth Rs 10,000 crore. The IPO is expected to value One97 Communications at $20 billion (about Rs 1.5 lakh crore).
The company intends to use the funds to strengthen the Paytm ecosystem, including through acquisition and retention of consumers and merchants, and providing them with greater access to technology and financial services.
Subscription Details: Day 2
The IPO was subscribed 0.48 times or 48% as of 5 p.m. on Nov. 9.
Institutional investors: 0.46 times.
Non-institutional investors: 0.05 times.
Retail investors: 1.23 times.
Watch BloombergQuint's IPO Adda with Paytm CEO Vijay Shekhar Sharma and President Madhur Deora: