Paytm closes IPO bidding with 1.89x oversubscription; creates history

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• Nov 11, 2021 | moderator

New Delhi: India's leading digital payments and financial services platform Paytm created history with its IPO bidding. It has closed the bid/supply for its IPO by being 1.89 instances oversubscribed.

Paytm is India's highest-valued unicorn and the nation's most considerable inventory market debut presently. The firm stands as a testament to the true Indian entrepreneurial story.

As per data from the exchanges, the subscription after Day 3 saw the largest IPO being over 2.79 times oversubscribed by QIBs and 1.66x by retail investors. As a result, a total of 9,14,09,844 Paytm shares have been bid for, as opposed to the 4,83,89,422 shares obtainable.

The Paytm IPO has seen surplusage need dashing in as QIBs, institutional home clients and mutual funds bid on the last day of the IPO stock. 

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Historic information has verified that on large IPOs, whereas retail clients wager on an initial day, QIB and HNIs spend funds on the last days of the subscription.

Some of the largest IPOs like Coal India, had seen the highest subscription on the last day of bidding. Coal India was simply 1.71x on Day 2 but closed at 15.28x on the closing day. 

The identical trend was also seen for recent and significantly smaller IPOs like Nykaa and PolicyBazaar. More than 90% of the QIB bids and overall bids appeared on Day 3.

Paytm will be heading to the exchanges with a huge $20 billion estimate. The interpreters at Reliance Securities further spoke of Paytm's valuation. They stated it stands for its value. It has vital scale and brand equity and is likely to sustain.

The firm has marked a huge uptick in its revenues driven by its payments and financial services offerings. As a result, the company's revenue is higher by 46% to Rs 9,480 million in Q1FY22, from Rs 6,494 million in Q1FY21.