The initial stake sale of Rs 18,300 crore, which began on Monday, saw a subscription of 18 per cent at the end of the first day and 48 per cent on the second day. This is the biggest IPO ever in Indian history.
according to the data of BSE, Investors bid for 5,54,20,422 equity shares till 1.30 pm on day 3, while the total issue size was 4,83,89,422 equity shares. This translates into oversubscription of 1.15 times.
The portion reserved for retail investors was subscribed 1.43 times, while the quota for institutional buyers got 1.59 times of bidding. Meanwhile, the share of non-institutional investors was subscribed only 7 per cent so far, BSE data suggested.
Some reports suggest that the Canada Pension Plan Investment Board (CPPIB), which had invested in the anchor round of the IPO, has increased its membership.
According to sources, CPPIB has bid for 6 lakh shares worth Rs 1,280 crore on Tuesday. As per reports, some more anchor investors may participate in the bidding process.
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One97 Communications, which has become a household name Paytm, has been one of the biggest beneficiaries of demonetisation. The IPO hit the market on the occasion of the fifth anniversary of demonetisation.
It is selling its shares in the range of Rs 2,080-2,150, with a face value of Re 1 each. Investors can bid for a minimum of 6 shares and multiples thereof.
The historic IPO will raise fresh equity of Rs 8,300 crore, while existing shareholders are selling shares worth Rs 10,000 through the offer for sale route.
Analysts say long-term investors, who want to bet on the digitization of payments, investment and financial solutions, and are willing to ignore potential pitfalls and stiff competition in the near future, may subscribe to the issue.
Richa Aggarwal, Senior Research Analyst, Equitymaster, said that though talking about profits in tech companies was not in fashion, but in this case, a lot remains to be desired even on the parameters of growth. In FY 2011, the year of the pandemic, when the use of digital wallets and mobile payments increased, the company reported a drop in revenue, Agarwal said.
“Despite a 60 per cent cut in marketing and promotional expenses, losses continued and the road to profitability is unclear. While it is highly likely to be a successful IPO from a long-term perspective, it seems more like a speculative than a prudent investment bet,” he said.