Paytm's parent One97 Communications, a leading digital firm, is all set to open its initial public offering (IPO) on November 8.
The Paytm IPO will remain open for subscription till November 10. The price band for the IPO has been fixed at Rs 2,080-2,150 per share. The shares of the company are expected to list on the BSE and NSE on November 18, 2021, though the listing date has not yet been announced.
One97 Communications offers consumers and merchants technology-led, easy-to-use digital products and services as well as easy and inclusive access to financial services.
The lot size of the Paytm IPO is a minimum of six shares. In order to apply for one lot, you need to pay Rs 12,900 at the higher price band of Rs 2150. A retail individual investor can apply for up to 15 lots (90 shares or Rs 193,500). The finalization of the Basis of Allotment for Paytm IPO is likely to be done on November 15, 2021, and the allotted shares will be credited to Demat accounts by November 17, 2021.
The company is planning to raise Rs 18,300 from this IPO. Out of the total, the fresh issue is worth Rs 8,300 crore and an offer for sale is Rs 10,000 crore. This is going to be the biggest IPO in terms of size if it is successful in its bid. Before this, state-owned public sector unit (PSU) Coal India raised Rs 15,200 crore in 2010.
Ahead of the IPO launch, Paytm on November 3 raised Rs 8,235 crore from anchor investors, according to reports. With this, Paytm has already secured 45 per cent of its IPO subscription amount.
The anchor investor round saw participation from both international as well as domestic investors. Blackrock, Canada Pension Plan Investment Board (CPPIB), Birla MF, GIC and other blue-chip funds participated in the round. The top investors were Blackrock, Canada Pension Plan and GIC. Blackrock reportedly invested Rs 1,045 crore, Canada Pension Plan Investment Board Rs 938 crore and GIC Rs 533 crore.
As per the draft red herring prospectus, "Proceeds from the IPO will be utilized towards growing and strengthening Paytm ecosystem, including through acquisition and retention of consumers and merchants and providing them with greater access to technology and financial services and investing in new business initiatives, acquisitions and strategic partnerships.”
As of June 30, 2021, the company offers payment services, commerce and cloud services, and financial services to 33.7 crore consumers and over 2.2 crore merchants.
"One 97 Communication (Paytm) is a play on digitisation of various financial services including payments, investments and financial solutions. At the upper end of the price band, the company is valued at 9.5-times post-issue book value (BV) and at 24 per cent of the annualised gross merchandise value (GMV)," says an ICICI Securities report. The brokerage has assigned no rating to the IPO.
