Paytm IPO is probably the biggest ever IPO offering that is opening today is the the Digital payments company Paytm offer to Public, this follows a series of other IPO which tasted success at the bourses. The Initial Public Offer for subscription on Monday (November 8). This follows after five IPO’s successfully concluded their IPOs last week and listed with significant gains on listing.
Paytm 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.
Here are few things investors have to know
Who is Paytm?
Launched over 10 years ago as a mobile recharging platform, Paytm tasted incredible success rapidly capitalizing the 2016 demonetisation in India. Paytm has since widened its services including insurance and gold sales, movie and flight ticketing, and bank deposits and remittances.
India’s biggest public issue, Paytm’s ₹18,300 crore initial public offering (IPO) by parent One97 Communications will open for subscription today. The price band of the three-day share sale, which concludes on November 10, has been fixed at ₹2,080-2,150 per share. Paytm has raised ₹8,235 crore from anchor investors ahead of its share sale
What is 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.
What is the 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?
Paytm IPO 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).
