Paytm IPO India’s biggest ever Paytm’s ₹ 18,300-crore share sale via Initial Public Offering (IPO) opened for subscription today. The company is selling it’s shares in the price band of ₹ 2,080-2,150 per share and retail investors can bid for a minimum of one lot of six shares up to a maximum of 15 lots. A single lot of Paytm shares will cost ₹ 12,900 at the upper price band.
Paytm’s IPO comprises a fresh issue of ₹ 8,300 crore and an Offer For Sale (OFS) by existing shareholders worth ₹ 10,000 crore.
The top investors diluting their stakes in the IPO apart from Paytm’s managing director and CEO Vijay Shekhar Sharma, include investors such as Japan’s SoftBank, China’s Ant Group and Alibaba along with Elevation Capital.
The Paytm company aims to utilise the IPO returns for different activities like “acquisition of consumers and merchants and providing them with greater access to technology and financial services”.
Patym will further invest in new business ventures, partnerships and acquisitions, along with the remaining funds that will be used for other corporate activities.
Shares worth ₹ 8,235 crore to over 100 institutional investors were allocated by Paytm, including Singapore government, ahead of the country’s largest stock market listing.
According to a regulatory document on November 3, the company garnered interest from 122 institutional investors who bought more than 38.3 million shares for ₹ 2,150 apiece.
Paytm, launched a decade ago as a platform for mobile recharging grew quickly after ride-hailing firm Uber listed it as a quick payment option. Further in 2016, it’s use amplified when a ban on high-value currency bank notes in India boosted digital payments.
According to Refinitiv data, 157 companies in India including Nykaa, Oyo Hotels and Rooms and online insurance aggregator Policybazaar have raised $17.22 billion via IPOs this year as of October 31, compared to $8.54 billion raised by 49 companies in the same period in 2020.
In the country’s corporate history, Paytm’s IPO is likely to be the biggest breaking a record held by Coal India Ltd, which raised ₹ 15,000 crore more than a decade earlier.