Paytm IPO subscribed 48% on second day, retail portion booked 1.23 times

The initial public offering (IPO) of One97 Communications Ltd, the operator of Paytm payments service, was subscribed 48% on the second day of issue today. The share sale received bids for 2.34 crore equity shares against the offer size of 4.83 crore shares.

The portion allocated for retail investors was subscribed 123 percent, while the reserved portion of non-institutional investors was subscribed 5 percent. Qualified institutional buyers put in bids for 46% of 2.63 crore shares reserved for them.

The issue will close on November 10 and the firm plans make its market debut on November 18. On October 22, Paytm had received market regulator Sebi's nod for the share sale.

The firm has raised its issue size to Rs 18,300 crore from Rs 16,600 crore. This is India's largest IPO till date, surpassing Coal India (Rs 15,475-crore IPO) and Reliance Power (Rs 11,700 crore IPO) in terms of issue size. The IPO comprises a fresh issue of equity shares of the face value of Rs 1 each, aggregating to Rs 8,300 crore and the offer for sale by the existing shareholders, aggregating to Rs 10,000 crore.

The Noida-based firm will use the proceeds of share sale to strengthen its payment ecosystem and for new business initiatives and acquisitions. JPMorgan Chase, Morgan Stanley, ICICI Securities, Goldman Sachs, Axis Capital, Citi and HDFC Bank are the booking running lead managers to the issue.

Lot size of the IPO is a minimum of six shares for which one will have to spend Rs 12,900. A maximum of 15 lots comprising 90 shares can be applied for by spending Rs 1,93,500.

The Noida-based firm will use the proceeds of share sale to strengthen its payment ecosystem and for new business initiatives and acquisitions.