Paytm chief executive officer Vijay Shekhar Sharma visited Tirupati temple and offered prayers ahead of the historic launch of the company’s Initial Public Offering. The IPO of Paytm, previously known as One97 Communications, is the biggest initial public offering in the Indian market history. The digital payment platform is looking to raise nearly $ 2.5 billion ( Rs 18,257 crores approximately) through its IPO.
Sharing a photo with Tirumala Tirupati Devasthanams’s executive officer Jawahar Reddy on his Twitter timeline, Sharma said that he had to seek blessing for the Paytm family.
https://twitter.com/vijayshekhar/status/1457625259952119809?s=20
Looking at the performance of IPOs introduced this year, Paytm will be hoping for a positive response from investors. 2021 became a record year for share listing with companies like Zomato managing to raise $1.3 billion (Rs 9,600crore approx) through their share issue in July.
Meanwhile, the subscription process for Paytm IPO opened today, November 8, and will go on till Wednesday, November 10. The price band of Paytm shares has been fixed at Rs 2,080 to Rs 2,150 per equity and interested investors can bid in the lot size of six equity shares and multiple. At the upper price limit of the shares, the investor will have to pay a minimum of Rs 12,900 to purchase a single lot.
Out of the total issue offer, 10 per cent has been fixed for retail investors whereas the limit for the qualified institutional buyer (QIB) is fixed at 75 per cent. The remaining 15 per cent portion is for non-institutional investors (NII).
Paytm’s initial public offering (IPO) includes the issuance of new equity shares worth Rs 8,300 crore and an Offer for Sale (OFS) by existing shareholders worth Rs 10,000 crore.
Apart from the CEO Vijay Shekhar Sharma, Paytm’s major investors like Japan’s SoftBank, China’s Ant Group and Alibaba and Elevation Capital are among the top investors diluting their shares in the company. The total issue includes Sharma’s Rs 18.73 lakh shares that are valued at Rs 402.70 crore.
Paytm will be using these proceeds in several areas. As per the company, the IPO proceeds will be firstly used for “strengthening Paytm’s ecosystem, including through the acquisition of consumers and merchants and providing them with greater access to technology and financial services”.
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