The initial stake sale worth Rs 18,300 crore, which kicked off on Monday, was subscribed 18 per cent at the end of day one and 48 per cent on day two. It is the largest-ever IPO in Indian history.
According to the data from BSE, investors bid for 2,69,70,654 equity shares or 56 per cent till 11.35 am of Day 3, against the total issue size of 4,83,89,422 equity shares.
The portion reserved for retail investors was subscribed 1.36 times, whereas the quota for institutional buyers received bids for 56 per cent. Meanwhile, non-institutional investors’ portion was subscribed only 6 per cent so far, the 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 subscription.
As per sources, CPPIB has bid for 6 lakh shares worth Rs 1,280 crore on Tuesday. A few more anchor investors may participate in the bidding process, as per the reports.
One97 Communication, which has become a household name as Paytm, has been among the biggest beneficiaries of demonetisation. The IPO hit the Street on the fifth anniversary of the note ban.
It is selling its shares in the range of Rs 2,080-2,150 apiece, with a face value of Re 1 each. Investors can bid for minimum of 6 shares and in the multiples thereof.
The historic IPO will raise fresh equity worth Rs 8,300 crore, whereas existing shareholders are offloading shares worth Rs 10,000 via the offer for sale route.
Long-term investors, who wish to bet on digitisation of payments, investments & financial solutions, and are willing to ignore likely losses and tough competition in the foreseeable future could look to subscribe to the issue, according to analysts.
Richa Agarwal, Senior Research Analyst at Equitymaster said, though it was unfashionable to talk of profits in tech companies, a lot was left to be desired even on growth parameters in this case. In FY21, the year of the pandemic, when the use of digital wallets and mobile payments surged, the company posted a decline in revenues, Agarwal said.
“Despite a 60 per cent cut in marketing and promotional expenses, the losses continued and the road to profitability is unclear. While it’s highly likely to be a successful IPO, from a long-term perspective, this seems more like a speculative than a prudent investment bet,” she added.
