Subscription for Paytm's $2.5-billion (Rs 18,300 crore) initial share offering, India's biggest maiden offer, was the fourth-least on the final day of the sale.
The IPO was subscribed 1.89 times, with the portions reserved for retail and institutional investors fully booked. It had got off to a slow start, with about 48% of the issue being bought through the second day and 18% on the first.
According to SEBI regulations, if a company doesn't receive the minimum subscription of 90% of the net offer to public, it has to refund the entire subscription amount received.
The IPO, having a price band of Rs 2,085-2,150 apiece, comprised a fresh issue worth Rs 8,300 crore and an offer-for-sale by existing shareholders worth Rs 10,000 crore. It is expected to value One97 Communications, parent of the payments services provider, 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 3
The IPO was subscribed 1.89 times as of 5 p.m. on Nov. 10.
Institutional investors: 2.79 times.
Non-institutional investors: 0.24 times.
Retail investors: 1.66 times.
Research Reports on Paytm IPO:
Digital Ecosystem Offering Inclusive Access To Financial Services: ICICI Direct
Investment Rationale, Strengths, Key Strategies, Risks: Anand Rathi
Watch BloombergQuint's IPO Adda with Paytm CEO Vijay Shekhar Sharma and President Madhur Deora:
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