Paytm IPO, India's largest, ends with 1.89 times oversubscription

One97 Communications-owned Paytm has been subscribed 1.89 times for its Rs 18,300-crore IPO on the last day of the subscription on Wednesday.

While the payment bank’s IPO witnessed traction from Qualified Institutional Buyers (QIBs) who subscribed 2.79 times the shares meant for the category, non-institutional investors that included corporates and individuals other than retail individuals, did not attract much interest and were subscribed just 0.24 times.

The portion earmarked for retail individual investors subscribed 1.66 times.

Considered the biggest IPO in the history of Indian capital markets, the IPO was subscribed only 18 per cent or 0.18 times on Monday, when it was opened for subscription.

Also Read | Where BlackRock sees value in the Paytm IPO

The total subscription had stood at 48 per cent on day 2. The IPO had opened at a price band of Rs 2,080-Rs 2,150 with a lot size of six.

Paytm had also raised Rs 8,235 crore from anchor investors last week. Blackrock, CPPIB, Birla MF, GIC and other blue-chip funds had participated in this round.

After Paytm’s announcement of the price band of its IPO, the price of its shares in the unlisted market fell from trading at over Rs 3,600 to Rs 2,700.

For the three months ended June 2021, Paytm has seen a huge uptick in its revenues driven by its payments and financial services offerings. The company’s revenue was up by 46 per cent to Rs 948 crore in Q1FY22, from Rs 649 crore in Q1FY21.

Paytm’s losses stood at Rs 381 crore for the quarter ended June 2021.

Check out latest DH videos here