After Tepid First Day, Bidding For Paytm IPO Opens On Day 2

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Paytm IPO: Portion reserved for retail investors was subscribed 48% on first day of the issue.

Paytm’s Rs 18,300 crore share sale via initial public offering (IPO), the country’s biggest-ever IPO, opened for bidding process on second day of the issue after witnessing a tepid first day of the issue. Paytm IPO was subscribed 18 per cent on day one of the issue. It received 88,23,924 bids for 4,83,89,422 shares on the offer and a total of 56,19,810 bids were received at the cut-off price, according to data on the National Stock Exchange. (Also Read: Paytm’s Rs 18,300 Crore IPO Opens For Subscription. Should You Invest?)

Retail investors showed keen interest in the Paytm IPO on first day of the issue as the portion set aside for them was subscribed 48 per cent. Portion reserved for Qualified institutional Buyers (QIBs), which include investors like foreign investors, financial institutions and banks, was subscribed 6 per cent while Non Institutional Investors did not place any bids on the first day of the IPO, according to data on the NSE.

Paytm is selling shares in the price band of Rs 2,080-2,150 per share and retail investors can bid for a minimum of one lot of six shares up to a maximum of 15 lots. At the upper price band one lot of Paytm shares will cost Rs 12,900.

Paytm allocated shares worth Rs 8,235 crore to more than 100 institutional investors, including the government of Singapore, ahead of the country’s largest stock market listing.

Paytm’s IPO consists of a fresh issue of Rs 8,300 crore and an offer for sale (OFS) by existing shareholders worth Rs 10,000 crore.

Apart from Paytm’s managing director and CEO Vijay Shekhar Sharma, investors like Japan’s SoftBank, China’s Ant Group and Alibaba as well as Elevation Capital are among the top investors diluting their stakes in the IPO.

Launched a decade ago as a platform for mobile recharging, Paytm grew quickly after ride-hailing firm Uber listed it as a quick payment option. Its use swelled further in 2016 when a ban on high-value currency bank notes in India boosted digital payments.

Author: desi123

Desi123.com is an online news portal that aims to provide the latest trendy news for Asians living in Asia and around the World.

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