The of Turtlemint Fintech Solutions Ltd was subscribed 0.51 times as of 2.42 pm on the second day of bidding, driven largely by demand from qualified institutional buyers (QIBs).
The ₹883-crore public issue, which closes on June 23, received bids for 51 per cent of the shares on offer, while non-institutional investors (NIIs) remained on the side lines.
The QIB portion was subscribed 0.73 times, emerging as the most subscribed category. The retail investor segment was booked 0.56 times, while the NII category saw muted participation with subscriptions of just 0.03 times.
Ahead of the IPO opening, Turtlemint Fintech Solutions raised ₹397.20 crore from anchor investors.
The company has fixed the price band at ₹144-152 per share, valuing it at more than ₹4,500 crore at the upper end of the band.
The IPO comprises a fresh issue of equity shares aggregating up to ₹660.72 crore and an offer for sale (OFS) of 1.46 crore equity shares worth about ₹221.95 crore by existing shareholders.
Under the OFS, promoters Anand Rohidas Prabhudesai and Dhirendra Nalin Mahyavanshi, along with existing investors including Kunal Shah, Nexus Venture Partners, Peak XV Partners, Blume Ventures and GGV Capital, will partially divest their holdings.
Use of funds
The company intends to utilise the proceeds from the fresh issue for strengthening its cloud and server infrastructure, meeting salary expenses for technology and product development teams, and funding marketing initiatives.
ICICI Securities, Jefferies India, JM Financial and Motilal Oswal Investment Advisors are the book-running lead managers to the issue, while KFin Technologies is the registrar.
SBI Securities assigned a neutral rating to the IPO, noting that Turtlemint operates a fintech platform that leverages digital partners and insurer partners to distribute insurance and other financial products, with a focus on B30+ markets where insurance penetration remains relatively low.
The brokerage said the company is yet to achieve profitability and continues to report negative operating cash flow. It also highlighted that Turtlemint operates in a highly competitive industry comprising established offline players and emerging online platforms. According to SBI Securities, the regulated nature of commission structures could also affect the company’s business model.
At the upper end of the price band of ₹152, the brokerage said the IPO is valued at 4.5 times its annualised 9MFY26 price-to-sales ratio based on post-issue capital. SBI Securities said it would prefer to track the company’s performance for a few quarters after listing before turning more constructive on the stock.