Paytm IPO - Subscription Day 1

5paisa Research Team 5paisa Research Team 13th December 2022 - 09:21 pm

The Rs.18,300 crore IPO of One97 Communications (Paytm), consisting of a fresh issue of Rs.8,300 crore and an offer for sale (OFS) of Rs.10,000 crore, saw tepid response on Day-1 of the IPO. As per the combined bid details put out by the BSE at the close of Day-1, One97 Communications (Paytm) IPO was subscribed 0.18X overall, with reasonable demand coming only from the retail segment. The issue closes on 10th November.

As of close of 08th November, out of the 483.89 lakh shares on offer in the IPO, One97 Communications (Paytm) saw bids for 88.24 lakh shares. This implies an overall subscription of 0.18X. The granular break-up of subscriptions was dominated by the retail investors. QIB bids and NII bids are expected to gather momentum on the last day, as is the general trend in the IPO market.

Paytm IPO Subscription Day-1

Category	Subscription Status
Qualified Institutional Buyers (QIB)	0.06 Times
Non Institutional Investors (NII)	0.02 Times
Retail Individuals	0.78 Times
Employees	N.A.
Overall	0.18 times

QIB Portion

The QIB portion of the IPO was subscribed just 0.06 times at the end of Day-1. On 03rd November, One97 Communications (Paytm) did an anchor placement of 383.02 lakh shares at the upper end of the price band of Rs.2,150 to 122 anchor investors raising Rs.8,235 crore. The list of QIB investors included a number of marquee names like Blackrock, GIC Singapore, Canadian Pension Fund, Alkeon Capital, Abu Dhabi Investment Authority (ADIA), Fidelity, Aberdeen, UBS, Aditya Birla Sun Life Mutual Fund; among others.

The QIB portion (net of anchor allocation as explained above) has a quota of 263.94 lakh shares of which it has got bids for 16.79 lakh shares, implying a subscription ratio of 0.06X for QIBs at the close of Day-1. QIB bids typically get bunched on the last day but the heavy demand for the anchor placement forebodes well for the demand for Paytm IPO.

HNI / NII Portion

The HNI portion got subscribed 0.02X (getting applications for 2.65 lakh shares against the quota of 131.97 lakh shares). This is a tepid response on Day-1 but this segment normally sees the maximum response bunched on the last day. That is because, bulk of the funded applications and corporate applications, come in on the last day of the IPO.

Retail Individuals

The retail portion was subscribed a more reasonable 0.78X at the end of Day-1, showing strong retail appetite. However, it must be noted that retail allocation is just 10% in this IPO. For retail investors; out of the 87.98 lakh shares on offer, valid bids were received for 68.80 lakh shares, which included bids for 56.20 lakh shares at the cut-off price. The IPO is priced in the band of (Rs.2,080-Rs2,150) and will close for subscription on 10th November 2021.

Also Read:-

List of Upcoming IPOs in November 2021

Paytm IPO - 7 Things to Know Before Applying for IPO

Upcoming IPOs in 2021