Paytm has priced its shares in the price band of Rs 2,080-2,150 per share, putting the company at the upper end of the price band at Rs 1.39 lakh crore.
Paytm’s Rs 18,300-crore IPO – India’s biggest ever public offering – on Monday saw only 18 per cent subscriber turnout on the first day of bidding. As per information available from stock exchanges, the initial public offering of Paytm’s parent company, One97 Communications Ltd., received bids for 88.23 lakh equity shares against an offer size of 4.83 crore shares.
The share earmarked for retail investors is 78 per cent, while that of non-institutional investors at 2 per cent, and qualified institutional buyers have bid for 16.78 lakh shares against 2.63 crore shares earmarked for them.
Other tech IPOs such as Nykaa and Zomato Ltd had received strong investor demand in their initial days, but were much lower than Paytm’s share sale.
Paytm has priced its shares in the price band of Rs 2,080-2,150 per share, putting the company at the upper end of the price band at Rs 1.39 lakh crore. The share sale will close on November 10.
The share allotment is likely to take place on November 15, and the shares are expected to be listed on November 18. The offer includes a fresh issue of equity shares worth Rs 8,300 crore and an offer for sale (OFS) of shares up to Rs. 10,000 crores.
OFS, or secondary share sale, involves the sale of shares by founder Vijay Shekhar Sharma up to Rs 402.65 crore.
The company has set aside an offer of 75 per cent for qualified institutional buyers, 15 per cent for non-institutional investors and the remaining 10 per cent for retail investors.
The record-setting IPO has received a mixed response from analysts, with some calling it a good bet to ride India’s fintech wave and others pointing to expensive prices.
At the upper end of the price band, Paytm is valued at 49.7 times FY11 revenue. Besides, it had negative cash flow for the last three financial years. It reported a loss of Rs 1,701 crore in FY11 on revenue of Rs 2,802 crore.
Incorporated in 2000, One97 Communications is India’s leading digital ecosystem for consumers and merchants. It provides users with a wide range of services – payment services and financial services.
The OFS includes shares worth Rs 4,704.43 crore offered by Antfin (Netherlands) Holdings, up to Rs 784.82 crore by Alibaba.com Singapore E-commerce, up to Rs 75.02 crore by Elevation Capital v FII Holdings, up to Rs 64.01 crore. by Elevation Capital V Limited, Rs 1,327.65 crore by SAIF III Mauritius, Rs 563.63 crore by SAIF Partners, Rs 1,689.03 crore by SVF Partners and Rs 301.77 crore by International Holdings.
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