Paytm IPO - Subscription Day 3
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 and the trend remained subdued on Day-2 also.
As per the combined bid details put out by the BSE at the close of Day-3, One97 Communications (Paytm) IPO was subscribed 1.89X overall, with strong demand coming from the QIB segment. The issue has closed on 10th November.
As of close of 10th November, out of the 483.89 lakh shares on offer in the IPO, One97 Communications (Paytm) saw bids for 914.10 lakh shares. This implies an overall subscription of 1.89X.
The granular break-up of subscriptions was dominated by the QIBs and retail investors. NII bids did not gather momentum even on the last day and that portion remained undersubscribed.
One97 Communications (Paytm) IPO Subscription Day-3
|
Category |
Subscription Status |
|
Qualified Institutional Buyers (QIB) |
2.79 Times |
|
Non Institutional Investors (NII) |
0.24 Times |
|
Retail Individuals |
1.66 Times |
|
Employees |
N.A. |
|
Overall |
1.89 times |
QIB Portion
The QIB portion of the Paytm IPO was subscribed 2.79 times at the end of Day-3. 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 736.55 lakh shares, implying a subscription ratio of 2.79X for QIBs at the close of Day-3. QIB bids typically got bunched on the last day although the demand was lower than originally anticipated.
HNI / NII Portion
The HNI portion got subscribed 0.24X (getting applications for 31.53 lakh shares against the quota of 131.97 lakh shares). This is a very tepid response on Day-3 and this segment did not see adequate response even on the last day. Typically, the active corporate applications and the funded applications were missing. This portion is likely to be reallocated.
Retail Individuals
The retail portion was subscribed a more reasonable 1.66X at the end of Day-3, showing decent 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 146.01 lakh shares, which included bids for 118.43 lakh shares at the cut-off price. The IPO is priced in the band of (Rs.2,080-Rs2,150) and has closed for subscription on 10th November 2021.
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