Digital brokerage Paytm Money, which is offering the Zomato IPO from July 14 to 16, saw the retail portion subscribed by over 200 per cent within the first two hours of opening.
This and other insights on Indian capital markets, are part of a study of investors who successfully completed the Zomato IPO application on its platform on the first day.
A Paytm Money spokesperson suggested that a large proportion of the Zomato IPO applicants could be young investors or those new to the capital markets.
More than 22 per cent of the applicants on the first day of the Zomato IPO on Paytm Money were new investors, while 27 per cent were under the age of 25 and 60 per cent were less than 30 years old.
Historically, 55 per cent of IPO applicants on the platform have been under 30. On an average, a Zomato IPO applicant was a year younger than IPO applicants for previous IPOs on Paytm Money, the firm said.
The average ticket size of IPO applications for Zomato on Day 1 was 20 per cent higher than the average ticket size for other IPOs on Paytm Money. This could be explained by the overall popularity of the Zomato IPO, or could also indicate a marginal surge in risk appetite of retail investors, Paytm Money said.
The data also indicated a more diverse pool of IPO applicants. Other than top cities like Delhi, Bengaluru, and Mumbai, Paytm Money saw first time participation from smaller towns like Kodinar in Gujarat, Tuensang in Nagaland, and Rangapara in Assam.
Women contributed 10 per cent of overall applications on Day-1 with a marginally higher ticket size vs. male counterparts.
Zomato was the first IPO on Paytm Money to go live with the “Pre-open IPO Application” feature, which allows users to place an IPO order 24x7, a couple of days before the IPO goes live.
In a bid to offer the most comprehensive IPO application experience to its users, Paytm Money has also launched a set of other advanced features recently, including one-click IPO applications, IPO application via shareholder category, and tracking of live IPO subscription numbers.
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