Paytm IPO opens today: Issue size, price band and other details
Several companies including Paytm have tapped capital markets this year in a fund-raising frenzy on the back of record highs hit by the Indian stock market, which has outperformed Asian peers so far.
Digital payments company Paytm will open its initial public offer (IPO) for subscription on Monday (November 8). This comes after five companies successfully concluded their IPOs last week.
The three-day IPO will close on November 10. At $2.46 billion ( ₹18,300 crore), Paytm IPO is said to be the biggest in India.
The bidding
The Paytm IPO will open for subscription on Monday. Those interested in bidding will have to do so in the lot of six and its multiples. The minimum investment will be ₹12,480 to get a single lot of the offer, promoted by One97 Communication, the parent company of Paytm.
Price band
The IPO will be available in the price band of ₹2,080- ₹2,150. The allotment will be finalised by November 15 and listing is expected on November 18.
What will be the size of the issue?
The IPO comprises fresh issuance of equity shares worth ₹8,300 crore and ₹10,000 crore from an offer for sale (OFS) by existing shareholders.
The offer will be the biggest in the country after Coal India's IPO in 2010, wherein the state-owned company had garnered ₹15,200 crore.
On Wednesday, Paytm, whose name is shorthand for "pay through mobile", raised ₹8,235 crore from anchor investors. It has signed up BlackRock, CPPIB together with the sovereign wealth funds of Singapore and Abu Dhabi as anchor investors.
Who will be diluting their shares in Paytm?
The company's offering will open on Monday and top investor Ant Financial plans to sell its 27.9% stake in Paytm worth $643 million. Apart from that, Paytm's managing director and CEO Vijay Shekhar Sharma will also offload shares worth up to $53.94 million ( ₹402.65 crore).
About Paytm
Launched a decade ago as a platform for mobile recharging, Paytm grew quickly especially after the 2016 demonetisation in India. Paytm has since branched out into services including insurance and gold sales, movie and flight ticketing, and bank deposits and remittances.
Paytm handles the equivalent of nearly $80 billion of payments annually to 22 million merchants. It has 337 million registered consumers.
