IPO temperature soars for Indian startups as Paytm opens for subscription with Nykaa ready to list

Paytm's IPO will be open for subscription between November 8 and 10, while Nykaa is aiming to list on November 11.
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The second week of November will see very heightened activity from the Indian startup ecosystem as the initial public offerings (IPOs) of the likes of Paytm, Nykaa, and PolicyBazaar are at various stages of public listing.

The biggest of them is the IPO of One97 Communication, the parent company of Paytm, which is aiming to raise Rs 18,300 crore and it will open for subscription from November 8 to 10. The shares are priced in the range of Rs 2,080 and Rs 2,150 per share.

Paytm's IPO, the biggest till date, is ahead of the ₹15,000 crore raised by Coal India way back in 2010.

Paytm founder Vijay Shekhar Sharma

The IPO by Paytm comprises issuance of fresh equity shares worth Rs 8,300 crore and Offer for Sale (OFS) by existing shareholders to the tune of Rs 10,000 crore. It has already raised Rs 8,235 crore from anchor investors who subscribed at a price of Rs 2,149 per share.

There is much riding on the IPO of Paytm as it would set the benchmark for the Indian startup ecosystem, which comes after the successful public listing of Zomato on the Indian stock exchanges and SaaS unicorn Freshdesk on Nasdaq.

The week will also witness the public listing of Nykaa, the omnichannel personal care and beauty products retailer. This is one of those rare profit-making startups.

The IPO of Nykaa received an extremely strong response from the investors as it was oversubscribed by 82.42 times. It received bids of 216 crore equity share as against IPO size of 2.62 crore shares.

Nykaa aimed to raise Rs 5,325 crore through its IPO and the shares were available for subscription in the price range of Rs 1085-1,125 per share.

The allotment of Nykaa shares is likely to be on November 8 and the listing will be on November 11.

The third one on the IPO bandwagon is PolicyBazaar, which is going to disclose its allotment status on November 10. The issue aimed to raise Rs 5,710 core which includes a fresh issue of Rs 3750 crore and an offer for sale of about Rs 1,960 crore.

It IPO was oversubscribed 16.59 times when it was open between November 1 and 3 at a price range of Rs 940-980 per share. It is likely to be listed on November 15.

Edited by Megha Reddy