Paytm raises Rs 8,235 crore from anchor investors ahead of IPO opening

The 122 anchors investors who participated in this round paid Rs 2,149 per share of Paytm which is at the higher end of the price band of its IPO.
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One97 Communication, the holding company of fintech payment giant Paytm has raised Rs 8,235 crore from anchor investors at a price of Rs 2,149 per share ahead of its initial public offering (IPO), which will open subscription from November 8 to 10.

In a notice to the stock exchanges, Paytm said there were 122 investors who participated in this exercise and the price paid was the upper end of the IPO issue where the lower end is Rs 2,080 per share. This saw participation from both domestic and overseas investors.

Out of the total allocation of 38,302,326 Equity Shares to the Anchor Investors, 4,885,386 Equity Shares (i.e. 12.8 percent of the total anchor investors' allocation) have been allocated to four mutual funds who have applied through a total of 18 schemes.

Among the leading investors who participated in this round include top sovereign wealth funds and financial investors like GIC of Singapore, CPPIB of Canada, BlackRock, Abu Dhabi Investment Authority, among others.

Paytm aims to raise Rs 18,300 crore from the public issue, which was raised from the earlier size of Rs 16,600 crore.

There is much expectation from the IPO of Paytm, which is the biggest in India after Coal India raised Rs 15,745 crore in 2010.

Paytm had 333 million consumers and 21.1 million merchants as of March 31, 2021.

Payments transaction volume market share and wallet payments transaction market share stands at 40 percent and 65 to 70 percent, respectively. 

Its merchant base grew double-digit from 11.2 million in March 2019 to 21.1 million in March 2021.  

Paytm Payments Bank holds a market share of 17.1 percent. As of March 31, the total outstanding fixed deposits were Rs 1750 crore.

Paytm will become the fourth leading Indian startup to hit the public markets after ZomatoNykaa, and Freshworks. Zomato and Freshworks had a blockbuster listing while Nykaa will list its shares on November 11.

The Indian startup ecosystem, which has witnessed one of the strongest capital inflow, is also now moving forward towards the public listing route.