Why did Indian mutual funds not buy Paytm aggressively?
Answer
Answer
The HNIs were virtually absent in the Paytm IPO, which explains why the Rs.18,300 crore IPO closed with just 1.89X subscription. A bigger story was that domestic mutual funds were virtually absent. Indian mutual funds bought just 348 lakh shares due to valuation concerns.
This is just a fraction of what the MFs had invested in the Zomato IPO and the Nykaa IPO. Domestic funds were uncomfortable with the valuations and the absence of profits and would rather bet on the Fintech foray of Bajaj Finance.