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

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.

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.

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.

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