Paytm IPO sees 9 percent overall subscription with retail portion at 50 percent on day one opening
The initial public offering (IPO) of One97 Communication, the holding company of fintech major, has got off to a good start on the first day of subscription, on Monday, with 9 percent subscription and retail portion accounting for 50 percent.
According to data available on the Bombay Stock Exchange (BSE) at 12:38 pm, the retail portion was subscribed by 43,65,420 shares out of the allotted 89,98,076. The total number of shares subscribed was 44,68,626 out of the total offer for sale at 4,83,89,422.
The Rs 18,300 crore IPO by Paytm is one of the biggest in the country's corporate history after Coal India's Rs 15,000 crore IPO 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.
The IPO has been priced in the range of Rs 2,080 to Rs 2,150 per share and will be open for subscription till November 10.
Retail investors can bid for a minimum of one lot of six shares up to a maximum of 15 lots.
The public issue will see some of the existing shareholders of Paytm like founder Vijay Shekhar Sharma, SoftBank, Ant Group, and Elevation Capital diluting their stakes. Vijay Shekhar Sharma will sell Rs 402.65 crore worth of shares through offer for sale.
The anchor investors who participated in the OFS include the likes of BlackRock Global Funds, Canada Pension Plan Investment Board (CPPIB), Abu Dhabi Investment Authority, as well leading domestic mutual funds.
Paytm plans to use the proceeds of the IPO for various activities like acquiring more consumers in terms of retail and merchants, besides making investments in new business ventures.
Paytm IPO is likely to set a new benchmark for the Indian startup ecosystem as it is not just the size of the issue but it also acts as a confidence booster for others.
Meanwhile, omnichannel beauty and fashion retailer startup Nykaa is likely to make its debut on the stock exchanges on November 11 after receiving a very strong backing from investors for the IPO subscription. The initial share-sale of FSN E-Commerce Ventures Ltd, which runs, was subscribed 81.78 times on the last day of subscription.