Paytm’s Rs 18,300-crore IPO -- India’s largest public issue to date - was subscribed only 18 per cent on the first day of bidding on Monday.
The initial public offering of Paytm’s parent company, One97 Communications Ltd received bids for 88.23 lakh equity shares against the offer size of 4.83 crore shares, according to information available from stock exchanges.
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.
Other tech IPOs such as those of Nykaa and Zomato Ltd had received stronger investor demand on their opening days but they were much smaller compared to Paytm’s share sales.
Paytm has priced its shares in a price band of Rs 2,080-2,150 per share, valuing the company at Rs 1.39 lakh crore at the upper end of the price band.
The share sale closes on November 10. Share allotment is likely to take place on November 15, and the shares are expected to be listed on November 18.
The offer comprises a fresh issue of equity shares worth Rs 8,300 crore and an offer for sale (OFS) of shares worth up to Rs 10,000 crore.
The OFS, or secondary share sale, consists of the sale of shares worth up to Rs 402.65 crore by founder Vijay Shekhar Sharma.
