Over the past few months, India has been witnessing a craze for Initial Public Offer or IPO. From beauty brands to food delivery apps — a hectic rush that started with Zomato’s record-setting IPO results does not seem to low down soon. E-commerce major Paytm is one of the latest companies to dive into the wave. Following a recent approval by Sebi, Paytm is set to launch its mega Rs 18,300-crore Initial Public Offer or IPO on Monday, November 8. Paytm’s parent One97 Communications is going to launch the offer, the biggest in India. This comes in the following week where India saw the issue of as many as five IPOs — FSN E-Commerce Ventures running Nykaa, FinoPayments Bank, Sigachi Industries, PB Fintech running Policybazaar, and SJS Enterprise.
Let’s take at the key details of Paytm Rs 18,300-crore IPO.
Paytm IPO Dates:
The investors who are interested to invest must know that the Paytm initial public offer will open for subscription on Monday, November 8 and close on Wednesday, November 10. Anchor booking for the Paytm IPO, which opened last week, has already raised Rs 8,235. Those who want to invest can bid in the lot of six equity shares and multiples thereof. At the upper price band, investors will have to shell out Rs 12,900 to get a single lot of One97 Communications.
Paytm IPO Price:
One97 Communications has fixed the price band at Rs 2,080 to Rs 2,150 per equity share for Paytm’s upcoming IPO. At upper price band, Paytm will raise Rs 18,300 crore.
Paytm IPO Issue Size:
The IPO by Paytm comprises issuance of fresh equity shares worth Rs 8,300 crore and Offer for Sale (OFS) by existing shareholders to the tune of Rs 10,000 crore.
Vijay Shekhar Sharma, founder, MD and CEO of Paytm, as well as major investors such as Japan’s SoftBank, China’s Ant Group and Alibaba and Elevation Capital are among the top investors diluting their shares in the company. Of this, Vijay Sekhar Sharma will sell 18.73 lakh shares valued at approximately Rs 402.70 crore.
Paytm IPO Quota Details:
For retail investors in One97 Communications IPO, the quota has been fixed at 10 per cent of the net offer. For qualified institutional buyer (QIB), the quota has been fixed at 75 per cent while for non-institutional investors (NII), the portion has been reserved at 15 per cent. Nykaa has reserved 2.5 lakh equity shares of the total issue size for employees.
Paytm IPO Issue Objective:
Paytm is going to use to proceeds of the Initial Public Offer in several areas. According to the company, it will be firstly used for “growing and strengthening our Paytm ecosystem, including through acquisition of consumers and merchants and providing them with greater access to technology and financial services”. The company will also use the proceeds to invest in new business initiatives, acquisitions and strategic partnerships. The remaining amount will be used for general corporate purposes, said the company.
Paytm IPO Grey Market Premium:
Paytm shares were trading at a premium of Rs 150 in the grey market, according to IPO Watch data. This was lower than the share price band fixed at Rs 2,080 to Rs 2,150 per equity share. A grey market premium indicates the nature of shares on the bourses.
Paytm Financials:
One 97 Communications, established in 2000, is the leading communications platform in India. Paytm, which is under the umbrella of the company, is the country’s largest digital ecosystem for consumers and merchants. As of FY21, Paytm had recorded a GMV of Rs 4 lakh crore. As of June 2021, the company said it offers payment services, commerce and cloud services, and financial services to around 33.7 crore consumers and more than 2.2 crore merchants.
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