Paytm's 18-billion-rupee initial public offering (IPO) by parent company One97 Communications will open for subscription today. It is expected to be one of India's biggest public issues.
The price range for the three-day stock offering, which ends on November 10, has been set at Rs 2,080-2,150 per share. A minimum of one lot of six shares and a maximum of 15 lots are available
for retail investors to bid on. One lot of Paytm shares will cost 12,900 at the upper price band. Paytm has raised Rs. 8,235 crore from anchor investors ahead of its initial public offering (IPO).
Here are the key details you must know before subscribing for the IPO
--Paytm's IPO includes an Rs 8,300 crore fresh issue and a 10,000 crore offer for sale (OFS) by existing investors.
--In addition to Paytm's managing director and CEO Vijay Shekhar Sharma, investors such as Japan's SoftBank, China's Ant Group and Alibaba and Elevation Capital, are among the
main shareholders diluting their stakes in the IPO.
--Paytm plans to use the proceeds from the IPO to fund a variety of initiatives, including "acquiring consumers and merchants and providing them with greater access to technology and financial services." The remaining portion of the funds will be used for other corporate activities, such as new business ventures, partnerships, and acquisitions.
--More than 100 institutional investors, including the Singapore government, obtained shares worth Rs 8,235 crore from Paytm ahead of the country's largest stock market listing.
--According to a regulatory document dated November 3, Paytm managed to draw the interest of 122 institutional investors, who purchased more than 38.3 million shares for Rs 2,150 each.
--Among the investors were BlackRock Global Funds, Canada Pension Plan Investment Board, and Abu Dhabi Investment Authority.
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--Paytm, which began as a platform for mobile recharging a decade ago, grew quickly after Uber listed it as a quick payment option. When India banned high-value currency bank notes in 2016,
it boosted digital payments even more.
--Founded in 2010, Paytm now has a market capitalization of $16 billion and is one of India's largest digital payment companies. With this public offering, the company is looking for
a valuation of $19.3 billion to $19.9 billion.
--On the back of record highs in the Indian stock market, which has outperformed Asian peers so far this year, several companies, including Paytm, have tapped capital markets in a fund-raising
fury this year.
--According to Refinitiv data, 157 companies in India, including TPG-backed Nykaa, Oyo Hotels and Rooms, and online insurance aggregator Policybazaar, have raised $17.22 billion through
initial public offerings this year, compared to $8.54 billion raised by 49 companies in the same period last year.
--Paytm's IPO is expected to be the largest in Indian corporate history, breaking the previous record of Rs 15,000 crore set by Coal India Ltd more than a decade ago.
How to apply for IPO?
- You can apply for Paytm’s IPO via stock trading apps like Zerodha’s Kite application, Paytm App itself and from your bank.
- Applying for Initial Public Offering (IPO) on Paytm Money
- Open the Paytm Money app and log in.
- On the home screen, go to the IPO section.
- Fill out an application for the IPO that is currently accepting applications.
- Bidding details such as quantity, amount, and more should be included.
- To make a payment, enter your UPI id.
You can also invest through your bank.
- Log in to your online banking account.
- Select the IPO option from the investment section.
- To complete the verification process, enter your investment and bank account details.
- After that, choose the IPO for which you want to apply.
- Enter shares number you want to bid for with bid price
- Read the 'terms and conditions' documents and agree to them.
- Submit the application.