Digital payments platform Paytm's parent company One97 communication announced that its much-awaited IPO would open on November 8. The price band has been set at Rs 2,080- Rs 2,150 per share. This implies the firm is now valued between Rs 1.44 lakh crore- Rs 1.48 lakh crore.
The three-day subscription period closes on November 10.
Paytm stated that it planned to raise Rs 18,300 crore from the IPO, inclusive of Rs 8,300 crore from the issuance of fresh equity and Rs 10,000 crore from an offer for sale (OFS).
The company has mandated investment banks Morgan Stanley, Goldman Sachs Group Inc., Citigroup Inc. and ICICI Securities Ltd to manage the issue.
The offer of sale consists of a sale of up to Rs 402.65 crore by founder Vijay Shekhar Sharma, up to Rs 4,704.43 crore by Ant Financial (Netherlands) Holdings, up to Rs 784.82 crore by Alibaba.com Singapore E-commerce and up to Rs 75.02 crore by Elevation CapitalV FII Holdings.
Further, Elevation Capital V Ltd will offer up to Rs 64.01 crore, Saif III Mauritius Rs 1,327.65 crore, Saif Partners Rs 563.63 crore, SVF Partners Rs 1,689.03 crore and International Holdings Rs 301.77 crore, as per the IPO document.
Founder and Chief Executive Officer Vijay Shekhar Sharma had said their life was now going to become "QSQT now or quarter se quarter tak" (from quarter to quarter). He added the founders have been getting personal messages from investors seeking an allocation in the company's IPO.
The digital payments enabler stated in its red herring draft prospectus that it recorded revenues of Rs 2,800 crore in FY 2021 from 114 million users on its platform. It facilitated more than 7.4 billion transactions in the same time period.
The proceeds from the fresh issue will be used towards (1) Growing and strengthening our Paytm ecosystem, including through the 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, reported The Indian Express, citing the information in the RHP.
