Paytm opens to biggest-ever IPO at Rs 18,300-crore; check GMP, price band
Paytm IPO comprises issuance of fresh equity shares worth Rs 8,300 crore and Offer for Sale (OFS) by existing shareholders to the tune of Rs 10,000 crore.
India's biggest-ever initial public offering of One97 Communications, which operates under brand name Paytm is now open for subscription. Paytm's Rs 18,300-crore share sale is the biggest in the country after Coal India's IPO back in 2010 wherein the state-owned company had garnered Rs 15,200 crore. The company is selling shares in the price band of Rs 2,080-2,150 per share implying a valuation of around Rs 1.48 lakh crore.
The company skipped pre-IPO funding round to expedite the launch of the initial share sale and retail investors can bid for a minimum of one lot of six shares up to a maximum of 15 lots. At the upper price band one lot of Paytm shares will cost Rs 12,900.
Paytm was founded barely a decade ago by Vijay Shekhar Sharma, the son of a schoolteacher who says he learned English by listening to rock music. The firm is backed by Chinese tycoon Jack Ma's Ant Group, Japan's SoftBank and Warren Buffett's Berkshire Hathaway, which together own around a third of the company.
Paytm IPO comprises issuance of fresh equity shares worth Rs 8,300 crore and Offer for Sale (OFS) by existing shareholders to the tune of Rs 10,000 crore. CEO Vijay Shekhar Sharma will offload shares worth up to Rs 402.65 crore while Antfin (Netherlands) Holdings will sell shares to the tune of Rs 4,704.43 crore.
Launched in 2010, Paytm quickly became synonymous with digital payments in a country traditionally dominated by cash transactions platform. It grew quickly after it became a mobile recharging quick payment option listed for ride-hailing firm Uber. Its use swelled further in 2016 when a ban on high-value currency bank notes in India boosted digital payments.
Digital payments are expected to more than double from USD 20 trillion in FY 2021 to USD 40-50 trillion by FY 2026 with several factors, including government initiatives and reforms, improving technology, increasing reach and awareness.