Paytm marks one of the biggest stock market debuts; IPO subscribed 18 pc on day one
The initial public offering (IPO) of One97 Communication — the parent company fintech startup Paytm — was subscribed 18 percent on the first day of its opening. The subscription will close on November 10.
According to the Indian bourses, Paytm's Rs 18,300 crore issue received bids for 88.23 lakh equity shares as against an offer size of 4.83 crore shares. The shares are priced between Rs 2,080 and Rs 2,150 per share.
While retail investors' subscription to the IPO stood at 78 percent on day one, the reserved portion of non-institutional investors was subscribed 2 percent. The qualified institutional buyers bid for 6 percent of their allotted quota.
Paytm's IPO comprises the issuance of fresh equity shares worth Rs 8,300 crore and an 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 for Rs 2,149 per share.
The retail investors can bid for a minimum of one lot of six shares, up to a maximum of 15 lots.
Paytm's IPO is one of the biggest debuts on the Indian stock markets, followed by Coal India, which saw a Rs 15,000 crore IPO in 2010.
The public issue will see some of the existing shareholders of Paytm, including founder Vijay Shekhar Sharma, SoftBank, Ant Group, and Elevation Capital, diluting their stakes. Paytm Founder Vijay Shekhar Sharma will sell Rs 402.65 crore worth of shares through an Offer for Sale.
The anchor investors, who participated in the OFS, include BlackRock Global Funds, Canada Pension Plan Investment Board, Abu Dhabi Investment Authority, and leading domestic mutual funds.
Paytm plans to use the proceeds from the IPO for various activities, including acquiring more consumers in terms of retail and merchants, besides making investments into new business ventures.