Paytm IPO Opens Today: Paytm’s parent company One97 Communications is all set to launch its Mega Initial Public Offering (IPO) on Monday, November 8. The leading financial services and solutions company is planning to raise Rs 18,300 crore from its first offer. . Paytm’s IPO will be the largest ever public offering in India. Incorporated in 2000, One97 Communications is India’s leading digital ecosystem for consumers and merchants. It offers users a range of services – payment services, commerce and cloud services, and financial services. It has played a major role behind India’s cashless economy over the years.
Paytm IPO Price, Issue Size, Offer Details
Paytm’s IPO will be open for subscription from November 1 to 3. The price band has been fixed at Rs 2,080 – Rs 2,150 per share. The minimum bid lot size has been fixed in the form of 6 equity shares and thereafter in multiples of 6 shares. Hence, retail investors can invest a minimum of Rs 12,900 for a lot. The maximum investment for them for 15 lots would be Rs 1,93,500. The company will set aside 75 per cent for qualified institutional buyers, 15 per cent for non-institutional investors and the remaining 10 per cent for retail investors.
Paytm IPO Offer Details:
The offer would be a fresh issue of Rs 8,300 crore and an offer for sale of Rs 10,000 crore by way of selling to the shareholders including the founder and investors.
Founder Vijay Shekhar Sharma will sell shares worth Rs 402.65 crore through OFS. Among the investors, Antfin (Netherlands) Holding BV will sell shares worth Rs 4,704.43 crore, Alibaba.com Singapore E-commerce will sell shares worth up to Rs 784.82 crore, SVF Panther (Cayman) Rs 1,689.03 crore and BH International Holdings 301.77 crore through OFS. Will sell shares of Rs.
Elevation Capital V FII Holdings and Elevation Capital V are going to sell shares worth Rs 75.02 crore and Rs 64.01 crore, while SAIF III Mauritius Company, and SAIF Partners India IV will sell shares worth Rs 1,327.65 crore and Rs 563.63 crore through OFS. Mountain Capital Fund LP, RNT Associates, DG PTM LP, Ravi Datla, Amit Khanna, Prakhar Srivastava, Saurabh Sharma, Manas Bisht, Sanjay S Wadhwa, Shashiraman Venkatesan, N Ramkumar and Abhay Sharma – will sell shares worth Rs 86.98 crore.
Paytm IPO Anchor Investor
Paytm raised ₹8,235 crore from 122 anchor investors by allotting 3.83 crore shares at ₹2,150 per share. BlackRock Global Funds – through World Technology Fund (40.38 lakh shares) and World Financial Fund (6.376 lakh shares) – have garnered 12.2 per cent of the total anchor stake. About 43.62 lakh shares (11.4 per cent) have been allotted to CPPIB. Other anchor investors were Aditya Birla Sun Life Trustee, Government of Singapore, Vanguard, Schroder International Selection Fund, Sands Capital Funds, Mirae Asset, Marshall Weiss Investment Strategies, Fidelity, UBS, Janus Henderson, Nomura India Investment Fund, HDFC Mutual Fund, Morgan. Stanley Asia (Singapore), Goldman Sachs (Singapore), Fidelity, Master Trust Bank of Japan, Janus Henderson, Aberdeen, Societe Generale and BNP Paribas.
Paytm IPO: Issuance Purpose
The company is going to use the net proceeds from its new issue to grow and strengthen the Paytm ecosystem, including the acquisition and retention of consumers and merchants and giving them greater access to technology and financial services. The fresh issue funds will also be used for new business initiatives, acquisitions and strategic partnerships and for general corporate purposes. Part of the OFS will go for sale to the shareholders.
Paytm IPO Valuation
“At the higher price band of Rs. 2,150, it is seeking an EV/sales multiplier of 46.1x, which appears to be spread out. The demand valuation is also consistent with China’s Ant Group’s proposed IPO in 2020, Choice Broking said. Thus given the growth potential and extended valuation, we assign a “Subscribe Long Term” rating to this issue.
“There is a large segment of the population who are deprived of payment and financial services products. Also there is a huge population of small businesses who have not seen the benefits of digital commerce. Thus One97 Communications Limited has a large addressable market to serve,” the brokerage said,
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