Paytm IPO listing today, signs of gray market premium off slow
Highlight
- Paytm’s Rs 18,300 crore IPO was the biggest IPO in the country’s corporate history
- Paytm is the second largest fintech IPO of 2021 globally after Spain-based Allfunds
- Paytm allotted its shares at Rs 2,150 per share, bringing the company’s value to Rs 1.39 lakh crore
Paytm IPO will be listed on NSE and BSE today. Paytm had earlier allotted shares at the upper price band of Rs 2,150. Based on the bids received for Paytm’s Rs 18,300 crore IPO, the digital payments and financial services firm will list an enterprise valuation of Rs 1,49,428 crore or a little over USD 20 billion at an exchange rate of 74.35, thus making it India’s largest will become one of the most valuable companies. companies.
According to the gray market, there may be a fall in the Paytm share price. Paytm gray market premium is negative. It is trading at a discount of around Rs 20 from the issue price.
Paytm’s IPO was the biggest IPO in the country. It was subscribed 1.89 times, with institutional buyers including FIIs flooding the sale of shares, demanding 2.79 times the number of shares reserved for them. The company saw participation from blue chip investors like BlackRock, Canada Pension Plan Investment Board, GIC, ADIA, APG, City of New York, Texas Teachers Retirement, NPS Japan, University of Texas, NTUC Pension from Singapore, University of Cambridge etc. Retail investors enjoyed 1.66 times of the 87 lakh shares reserved for them.
The issue size of Paytm IPO means that the actual value of its retail size is much larger as compared to recent internet IPOs like Zomato or Nykaa. Some of the biggest IPOs in the past like Coal India saw the highest number of subscriptions on the last day of bidding. Coal India was closed 15.28 times on the last day. The same trend was observed in the recent past as well, with much smaller IPOs such as Nykaa and Policybazaar, where QIBs accounted for more than 90 per cent of the bids, and the overall bids also came on the third day.
Paytm’s IPO 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 crore. The OFS, or secondary share sale, consisted of the sale of shares worth up to Rs 402.65 crore by founder Vijay Shekhar Sharma.
The company set aside 75 per cent for QIBs, 15 per cent for non-institutional investors and the remaining 10 per cent for retail investors.
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.
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