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One of the biggest public issues in the country, One97 Communications promoted Paytm opened for subscription on Monday. The ₹18,300 crore offer is said to be the biggest after Coal India's IPO in 2010, where the state-owned company had collected₹15,200 crore. The listing of Paytm comes after five companies successfully concluded their IPOs last week.
Paytm IPO: What is the price band?
The price band of the three-day share sale has been fixed at ₹2,080-2,150 per share. The digital payments company has raised ₹8,235 crores from major investors ahead of its share sale. The three-day IPO will close on November 10.
The allotment will be finalised by November 15 and listing is expected on November 18.
Paytm IPO: How can you bid?
Investors interested in bidding can do so in the lot of six and its multiples. Note that the minimum investment will be ₹12,480 in order to get a single lot of the offer.
What will be the size of the Paytm IPO issue?
The IPO comprises fresh equity shares worth ₹8,300 crores and ₹10,000 crores from an offer for sale (OFS) by existing shareholders.
Who will be modifying their shares in Paytm?
The company's offering will open on Monday and top investor Ant Financial plans to sell its 27.9 per cent stake in Paytm worth $643 million. Apart from that, Paytm's managing director and CEO Vijay Shekhar Sharma will also discharge shares worth up to $53.94 million (₹402.65 crores).
Paytm will be listed as a professionally managed company. "As per SEBI guideline, to be a professionally managed company, no single entity can hold over 25 per cent stake in the company," according to PTI.
Should you subscribe?
Going by the market experts, Paytm shares premium has entered the grey market, and attracted a GMP of ₹62 on Monday.
Some experts point out at valuations to be expensive, but Paytm has become well informed with digital payments through mobile to emerge as the market leader in the mobile payment space.
Experts suggest a long-term bet on the issue since it is well-positioned to benefit from the exponential growth in mobile payments. Paytm aims to use proceeds of the fresh issue to grow its business and acquire new merchants and customers. The company skipped the pre-IPO funding round to speed up the launch of the initial share sale.
Launched as a platform for mobile recharging, Paytm has grown exponentially after the 2016 demonetisation in India. It has branched out to different services including insurance and gold sales, movie, train and flight ticketing, and bank deposits and more.