Paytm IPO opens for subscription today

Last updated on November 24th, 2021 at 08:03 am

Noida -Paytm, the One97 Communications-owned digital payments company, has opened its initial public offering (IPO) subscription starting Monday, November 8, 2021. The price band has been set for Rs. 2,080 to Rs. 2,150 per share. The end date of the IPO subscription is November 10. This is the largest ever IPO in India through which One97 Communications aims to raise Rs. 18,300 crore. The last largest IPO in Indian history was of state-run mining company Coal India of Rs. 15,000 crore in 2010.  

The Paytm IPO includes the issue of equity shares worth Rs 8,300 crore and an offer for sale (OFS) worth Rs 10,000 crore by existing shareholders that include its founder Vijay Shekhar Sharma along with Ant Financials, Alibaba, Elevation Capital, and SAIF III Mauritius Company, Saif Partners.

Founder Vijay Shekhar Sharma will sell Rs 402.65 crore worth of shares through OFS. Ant Financials (Netherlands) Holding B.V. will sell up to Rs 4,704.43 crore worth of shares, Alibaba.com Singapore E-Commerce will sell Rs 784.82 crore of shares, SVF Panther (Cayman) Rs 1,689.03 crore, and BH International Holdings will sell Rs 301.77 crore worth of shares via OFS. The Paytm IPO has 75 percent shares reserved for qualified institutional buyers (QIBs) and 15 per cent reserved for non-institutional investors (NIIs). The remaining 10 percent is available for retail investors.

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According to information shared in RHP (red herring prospectus), funds raised from the fresh issue will be used for:

1. Growing and strengthening Paytm ecosystem, including acquiring consumers and merchants, while providing them with increased and better technology and financial services access.
2. Investing in new business initiatives, acquisitions and strategic partnerships.
3. For general corporate purposes.

Investors can subscribe to the IPO of Paytm in a lot of six equity shares and thereafter in multiples of the same. The shares are to be listed on both BSE (Bombay Stock Exchange) and NSE (National Stock Exchange).