Late demand: After slow start, Paytm IPO sees decent finish

By: |
November 11, 2021 3:45 AM

A day before the IPO, the firm successfully raised Rs 8,235 crore from 122 anchor investors at the upper price band of Rs 2,150 per share. Allotment of shares to investors is likely to take place on November 15, and the company is expected to list on the exchanges on November 18.

The retail portion was subscribed 1.16 times on the last day of subscription, while the portion for non-institutional investors (NIIs) ended with only 24% subscription.The retail portion was subscribed 1.16 times on the last day of subscription, while the portion for non-institutional investors (NIIs) ended with only 24% subscription.

India’s largest initial public offering of One97 Communications, the parent company of Paytm, was subscribed 1.89 times on the last day of bidding on Wednesday, data from the exchanges showed. Investors bid for a total of 9,14,09,844 equity shares against the offered 4,83,89,422 offered.

The portion set aside for qualified institutional buyers (QIBs) was subscribed 2.79 times, receiving bids for 7,36,55,310 shares against the offer of 2,63,94,231 on the back of late buying from foreign institutional investors on the third day.

The retail portion was subscribed 1.16 times on the last day of subscription, while the portion for non-institutional investors (NIIs) ended with only 24% subscription.

Paytm fixed the price band of the issue between Rs 2,080-2,150 per share to raise Rs 18,300 crore via its initial offering. The offer consisted of a fresh issue of equity shares worth Rs 8,300 crore and an offer-for-sale (OFS) of Rs 10,000 crore from its existing shareholders and promoters of the company.

The company’s IPO opened for subscription on November 8 and closed on November 10.

A day before the IPO, the firm successfully raised Rs 8,235 crore from 122 anchor investors at the upper price band of Rs 2,150 per share. Allotment of shares to investors is likely to take place on November 15, and the company is expected to list on the exchanges on November 18.

The fintech giant has proposed to utilise the net proceeds from the offer to strengthen its business verticals across insurance, credit, and e-commerce. Furthermore, the company will also look forward to acquiring more merchants and customer retaining, according to the draft red herring prospectus (DRHP) filed with Sebi.

This is the second attempt by Vijay Shekhar Sharma, founder & CEO, Paytm, to float the initial share sale of the company. Earlier in 2010, the company made its first attempt to enter the Indian equity markets. However, the plan wasn’t executed amid high volatility in the markets back then.

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