October 28, 2021 1:11:28 pm
Paytm IPO: The Rs 18,300 crore initial public offering (IPO) of One97 Communications, the parent entity of digital payments firm Paytm, will open on Monday, November 8, 2021, and will be available for subscription till Wednesday, November 10, 2021.
The price band of the IPO has been fixed at Rs 2,080-2,150 per share of the face value of Rs 1 each. Last week, the company had received a go-ahead from markets regulator Sebi.
The digital payments giant aims to raise Rs 18,300 crore through the offer. The company has increased its IPO size by Rs 1,700 crore from the earlier Rs 16,600 crore, with the increment coming entirely from the existing shareholders selling more stake.
The Paytm IPO comprises a fresh issue of equity shares worth Rs 8,300 crore and an offer for sale (OFS) worth Rs 10,000 crore by existing shareholders including its founder Vijay Shekhar Sharma along with Ant Financials, Alibaba, Elevation Capital, and SAIF III Mauritius Company, Saif Partners, as per the information provided in the red herring prospectus (RHP) available on the National Stock Exchange (NSE).
At Rs 18,300 crore, Paytm’s IPO will topple the IPO of state-run Coal India as the largest ever in the country. Coal India had raised Rs 15,000 crore in 2010.
Investors who wish to subscribe to Paytm’s IPO can bid in the lot of six equity shares and multiples thereof, as per its newspaper advertisement to Financial Express. At the upper price band, they will have to shell out Rs 12,900 to get a single lot of One 97 Communications. The shares will be listed on both BSE and NSE.
The Paytm IPO will have 75 per cent reserved for qualified institutional buyers (QIBs) and 15 per cent will be reserved for non-institutional investors (NIIs). The remaining 10 per cent of the issue will be available for retail investors.
The proceeds from the fresh issue will be used towards (1) Growing and strengthening our Paytm ecosystem, including through acquisition of consumers and merchants and providing them with greater access to technology and financial services, (2) Investing in new business initiatives, acquisitions and strategic partnerships and, (3) For general corporate purposes, according to the information in the RHP.
Morgan Stanley India Company, Goldman Sachs (India) Securities, Axis Capital, ICICI Securities, J.P. Morgan India, Citigroup Global Markets India and HDFC Bank are the book running lead managers to the IPO. Link Intime India is the registrar of the issue.
The anchor portion is likely to open on Wednesday, November 3, 2021, one working day prior to the opening date for the public offer, the share allotment is likely to take place on November 15, 2021, and the shares are expected to be listed on November 18, 2021.
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