Paytm’s initial public offering is set to open for subscription on November 8. It will be the biggest public offering in Indian history with an IPO size of Rs 18,300 crore. However, Rs 15,000 crore was raised by state-owned Coal India more than a decade ago.
The size of the IPO was recently raised. It was originally planned from Rs 16,600 crore to Rs 18,300 crore. This was because the existing shareholders including Alibaba’s Ant Group and SoftBank decided to sell more shares through an offer-for-sale.
The IPO of the second most-valuable internet company in the country has already created a trending topic among investors and is one of the most anticipated IPOs of the year. According to sources, it is likely to receive a strong reception when it opens for public subscription. After the IPO, the company is likely to be valued at $20 billion.
The Paytm IPO will open on November 8 and interested individuals will be able to bid for the public issue till November 10. However, the company is likely to be listed on the Bombay Stock Exchange and the National Stock Exchange on November 18 after the IPO.
The price band of the Paytm IPO has been set at Rs 2,080-Rs 2,150 per share. Investors can bid for a minimum of six shares under a lot and a maximum of 90 shares.
At least 10 per cent of the public issue has been reserved for retail investors, which makes it 75 per cent for qualified institutional buyers and 15 per cent for non-institutional investors.
The Noida-based company recently increased its IPO size by roughly Rs 1,700 crore to Rs 18,300 crore. The public issue will comprise fresh issuance of equity shares worth Rs 8,300 crore and an offer-for-sale of up to Rs 10,000 crore.
Paytm’s red herring prospectus suggests that Ant Financials is selling shares worth Rs 4,704.40 crore and Alibaba is selling shares worth Rs 785 crore.
Meanwhile, Softbank is expected to sell shares worth Rs 1,689 crore. Elevation Capital will sell shares with a total value of more than Rs 2,030 crore. Vijay Shekhar Sharma is expected to sell shares over Rs 400 crore.
Morgan Stanley India Company, Goldman Sachs (India) Securities, Axis Capital, ICICI Securities, JP Morgan India Private Limited, Citigroup Global Markets India Private Limited and HDFC Bank are the book running lead managers to the public issue. Link Intime India will be the registrar of the issue and will be responsible for the allotment process.
However, Paytm’s parent firm, One97 Communications, was founded by Vijay Shekhar Sharma in 2000 and it has emerged as India’s leading digital payment service platform. While it began its journey as a value-added services provider, it now provides a wide range of financial services besides doubling up as an online mobile wallet and payments platform.