Summary of this article
Turtlemint IPO subscribed 51 per cent on Day 2; QIBs led demand
Retail response remained moderate, while NII participation stayed weak
GMP slipped below 1 per cent, indicating muted listing expectations
Turtlemint Fintech IPO Day 2: The initial public offering (IPO) of Turtlemint Fintech Solutions saw moderate investor participation on the second day of bidding on June 22, with the issue subscribed 51 per cent so far. Demand continued to be driven by qualified institutional buyers (QIBs), which emerged as the most subscribed investor category, while retail participation remained moderate and non-institutional investors (NIIs) stayed largely on the sidelines.
The issue opened for subscription on June 19 and will close on June 23.
Ahead of the IPO opening, the insurtech company raised Rs 397.2 crore from anchor investors by allotting 26.13 million shares to 32 institutional investors at the upper end of the price band. Several domestic mutual funds participated through multiple schemes, alongside investors such as Societe Generale, BNP Paribas, Amansa Holdings and insurance companies.
Founded in 2015 by Dhirendra Mahyavanshi and Anand Prabhudesai, Turtlemint operates a technology-led insurance distribution platform that allows customers to buy insurance products through a network of advisors. The company has sold nearly 16 million insurance policies through over 500,000 advisors and serves more than 12 million customers.
Turtlemint Fintech Solutions IPO Subscription Status
As of 4:00 PM on June 22, the IPO had received bids for around 51 per cent of the shares on offer. The QIB portion was subscribed 0.73 times, retail investor portion was subscribed 0.59 times, while the NII category saw limited demand with subscriptions of only 0.04 times.
Under the issue structure, 75 per cent of the net offer has been reserved for QIBs, 15 per cent for NIIs and 10 per cent for retail investors. The company has offered 43.55 million shares to QIBs, including the anchor portion, while 8.71 million shares have been reserved for NIIs and 5.81 million shares for retail investors.
Turtlemint Fintech Solutions IPO Details
Turtlemint Fintech Solutions is looking to raise Rs 882.67 crore through its public issue. The IPO consists of a fresh issue of shares worth Rs 660.72 crore and an offer for sale of 14.6 million shares aggregating to Rs 221.95 crore by promoters and existing shareholders.
The company has fixed the price band at Rs 144-152 per share, valuing the insurtech company at more than Rs 4,500 crore at the upper end of the price band. The minimum lot size for retail investors is 98 shares, requiring an investment of Rs 14,896 at the upper price band.
The basis of allotment is expected to be finalised on June 24, while refunds and credit of shares are scheduled for June 25. The company's shares are expected to list on the BSE and NSE on June 29.
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.
Turtlemint Fintech Solutions IPO Objectives
The company intends to use the proceeds from the fresh issue to strengthen its technology infrastructure and support future growth initiatives. It plans to spend Rs 25.64 crore on cloud and server infrastructure and Rs 193.04 crore towards salary expenses for its technology and product development teams.
Turtlemint also proposes to spend Rs 39.07 crore on marketing initiatives and around Rs 43 crore towards lease payments for existing properties occupied by the company and its subsidiary TIB. In addition, the company plans to invest Rs 128.64 crore in its wholly owned subsidiary to fund working capital requirements. A part of the proceeds will also be used for inorganic growth opportunities, strategic initiatives and general corporate purposes.
Turtlemint Fintech Solutions IPO GMP Today
The grey market premium (GMP) for the Turtlemint IPO remained subdued on June 22. According to websites that track such trades, Turtlemint shares were commanding a premium of around Rs 0.75 to Rs 1.50 in the unofficial market.
Based on the latest GMP and the upper end of the price band at Rs 152, the estimated listing price comes between Rs 152.75 and Rs 153.50 per share, indicating a potential listing gain of less than 1 per cent.
The GMP has declined over the past several sessions after touching highs of around Rs 6 earlier. However, grey market premiums serve only as an informal indicator of investor sentiment and not a reliable predictor of listing-day performance.
