Zomato IPO Attracting Young Investors, 27 Percent of Applicants on Day 1 Were Under 25: Paytm Money

Paytm Money said that the average Zomato IPO investor was a year younger than applicants for previous IPOs on its platform.

By Jagmeet Singh | Updated: 15 July 2021 18:11 IST

Zomato IPO Attracting Young Investors, 27 Percent of Applicants on Day 1 Were Under 25: Paytm Money

Photo Credit: Zomato

Zomato is aiming to raise Rs. 9,375 crores through its IPO

Highlights

Zomato IPO has got a strong response from young investors
Women contribution was 10 percent of the overall applicant base
Zomato IPO received participants from smaller towns as well

Zomato IPO, which was launched on Wednesday, July 14, seems to have attracted a significant demand from young investors in India as per trading app Paytm Money on Thursday. It reported that 27 percent of the IPO's applicants on the Paytm Money platform on the first day of the launch were under the age of 25 and 60 percent were under 30. More than 22 percent of the day-one applicants for the Zomato IPO on Paytm Money were new to capital market investors. The application window for the IPO is open until Friday, July 16.

Paytm Money said that the average Zomato IPO investor was a year younger than applicants for previous IPOs on its platform. Historically, 55 percent of IPO applicants on the platform have been under the age of 30, the digital brokerage arm of Paytm said in a statement.

In terms of demographics, Paytm Money said that other than top cities such as Bengaluru, Delhi, and Mumbai, first time participation was seen from smaller towns like Kodinar in Gujarat, Tuensang in Nagaland, and Rangapara in Assam. Women contribution was also 10 percent the overall applications received on the first day of the IPO, with a marginal higher ticket size over what was received from their male counterparts.

[Sponsored] Samsung Galaxy S24: The Ultimate Camera Phone With Smarter On-Device AI

The average ticket size of IPO applications for Zomato on the first day of its launch was also 20 percent higher than that of other IPOs on Paytm Money, the company said. It, however, didn't reveal the exact number of applicants received due to regulatory restrictions.

Paytm Money launched a pre-open IPO application feature ahead of the Zomato IPO launch earlier this week. It allows users to place an IPO order even a couple of days before the IPO goes live.

Zomato is aiming to raise Rs. 9,375 crores through its IPO, under which retail investors can apply for up to 13 lots where each lot contains 195 shares between Rs. 72–76. The Gurugram-based food delivery aggregator has Info Edge, Uber, Alipay Singapore, and Antfin Singapore as some of its major investors.

Zomato Set to Acquire About 10 Percent Stake in Grofers

Paytm Money noted that the retail portion of the Zomato IPO was subscribed by over 200 percent within the first couple of hours of its opening. A Paytm Money spokesperson said that a large proportion of the Zomato IPO applicants could be young or new to capital markets investors.

As per the data available on the BSE portal, the Zomato IPO was subscribed 4.80 times on the second day, with bids for 4.73 times issue size particularly received from retail investors.

Paytm Said to Target Rs. 21,800-Crore IPO, Could Be India’s Biggest Debut

Disclosure: Paytm's parent company One97 is an investor in NDTV's Gadgets 360.

Interested in cryptocurrency? We discuss all things crypto with WazirX CEO Nischal Shetty and WeekendInvesting founder Alok Jain on Orbital, the Gadgets 360 podcast. Orbital is available on Apple Podcasts, Google Podcasts, Spotify, Amazon Music and wherever you get your podcasts.

Affiliate links may be automatically generated - see our ethics statement for details.

Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.