Paytm IPO to open on 8th November 2021
On November 8, One97 Communications, which owns Paytm,
will launch the country's largest Initial Public Offering, valuing the business
at $19.3–19.9 billion. With over 337 million registered customers and over 21.8
million registered businesses as of June 30, Paytm is India's top digital
ecosystem for consumers and merchants.
Paytm IPO Date
Between November 8 and 10, One97 Communications'
Rs-18,300-crore initial public offering (IPO) will be open for subscription.
The price band for the IPO has been set at Rs 2,080-2,150 per share, with a
six-share lot size. They'll have to pay Rs 12,900 for a single batch of One 97
Communications at the top end of the price range. Both the BSE and NSE will
list the shares.
Qualified
Institutional Buyers (QIBs) would receive 75% of the Paytm offering, 15% will
go to non-institutional investors (NIIs), and the remaining 10% will go to
general investors.
The firm has boosted the amount of its public offering
by Rs 1,700 crore from the earlier amount which was Rs 16,600 crore, with the
rise completely due to existing owners selling more shares.
According to the information provided in the draft red
herring prospectus (DRHP) available on the National Stock Exchange (NSE), the
Paytm IPO consists of a fresh issue of equity shares worth Rs 8,300 crore and
an offer for sale (OFS) worth Rs 10,000 crore by existing shareholders
including Vijay Shekhar Sharma, Ant Financials, Alibaba, Elevation Capital, and
SAIF III Mauritius Company, Saif Partners.
Paytm's IPO, valued at Rs 18,300 crore, will surpass
Coal India's IPO as the country's largest ever. In the year 2010, Coal India
raised Rs 15,000 crore.
What is the
purpose of the offer?
One97 stated in its DRHP that the cash obtained will
be used to expand the Paytm ecosystem by attracting and retaining users and
merchants. Consumers and merchants have been attracted through marketing, cash
back, and incentives, according to the company, which also provides merchants
with technology through its consumer and business app, payment platforms, and
payment instruments.
Competitive
advantages
·
India's most popular digital
payment platform.
·
The company has a strong brand
identity.
·
With 333 million overall consumers,
114 million yearly transactional users, and 21 million registered merchants,
the company has a large client base.
·
Paytm Super-app allows you to
access a variety of digital payment services on your mobile device.
On Wednesday, November 3, 2021, the anchor portion is
expected to open one working day before the public offering; the share
allotment is scheduled for November 15, 2021; and the shares are expected to be
listed on the exchange on November 18, 2021.
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