In the last few months, India has been witnessing a craze for initial public offer or IPO. From beauty brands to food delivery apps – a busy rush that started with Zomato’s record-setting IPO results doesn’t seem to subside anytime soon. e-commerce head Paytm One of the latest companies to dive into the wave. Following the recent approval by SEBI, Paytm is all set to launch its Rs 18,300 crore Initial Public Offer or IPO on Monday, November 8. Paytm’s parent One97 Communications is going to launch the biggest offering in India. This comes in the next week where India saw the issue of five IPOs – FSN E-commerce Ventures running Nykaa, FinoPayments Bank, Sigachi Industries, Policybazaar running PB Fintech, and SJS Enterprise.
Let’s take a look at the key details of Paytm’s Rs 18,300 crore IPO.
Paytm IPO Dates:
Investors interested in investing should be aware that the Paytm Initial Public Offering will open for subscription on Monday, November 8 and close on Wednesday, November 10. Anchor bookings have already raised Rs 8,235 for the Paytm IPO that opened last week. Those wishing to invest can bid in six equity shares and multiples thereof. In 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 for Paytm’s upcoming IPO at Rs 2,080 to Rs 2,150 per equity share. Paytm will raise Rs 18,300 crore at the upper price band.
Paytm IPO Issuance Size:
Paytm’s IPO includes issue of fresh equity shares worth Rs 8,300 crore and Offer for Sale (OFS) by existing shareholders worth Rs 10,000 crore.
Paytm founder, MD and CEO Vijay Shekhar Sharma, as well as Japan’s SoftBank, China’s Ant Group and leading investors such as Alibaba and Elevation Capital, are among the top investors to reduce their shares in the company. Out of this, Vijay Shekhar Sharma will sell 18.73 lakh shares worth about Rs 402.70 crore.
Paytm IPO Quota Details:
The quota for retail investors in the IPO of One97 Communications has been fixed at 10 per cent of the net offering. The quota has been kept at 75 per cent for Qualified Institutional Buyers (QIBs) and 15 per cent for Non-Institutional Investors (NIIs). Nykaa has reserved 2.5 lakh equity shares of the total issue size for employees.
Purpose of Paytm IPO Issuance:
Paytm is going to use the proceeds of the initial public offering in multiple sectors. According to the company, it will first be used to “enhance and strengthen our Paytm ecosystem, including by acquiring consumers and merchants and giving them greater access to technology and financial services”. The company will also use the proceeds to invest in new ones. Business initiatives, acquisitions and strategic partnership balances will be used for general corporate purposes, the company said.
Paytm IPO Gray Market Premium:
According to IPO Watch data, Paytm shares were trading at a premium of Rs 150 in the gray market. This was lower than the share price band fixed at Rs 2,080 to Rs 2,150 per equity share. Refers to the nature of the shares on the gray market premium shares.
Paytm Financial:
One97 Communications, established in 2000, is the leading communication platform in India. Paytm, which is under the umbrella of the company, is the country’s largest digital ecosystem for consumers and merchants. Till FY21, Paytm had registered a GMV of Rs 4 lakh crore. As of June 2021, the company said it provides payment services, commerce and cloud services and financial services to approximately 337 million consumers and over 22 million merchants.
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