Digital payments company Paytm is all set to launch its initial public offer (IPO) next week. The issue will open for three days - from November 8-10.
Ahead of the IPO launch, Paytm on Wednesday raised $1.1 billion ( ₹8,235 crore) from anchor investors. The anchor investor round saw participation from Blackrock, CPPIB, Birla MF, GIC and other blue-chip funds leading to 10 times oversubscription of the shares, as per a stock exchange filing.
Blackrock invested ₹1,045 crore, Canada Pension Plan Investment Board ₹938 crore and GIC ₹533 crore.
With this, Paytm has already secured 45 per cent of its $2.4 billion ( ₹18,300 crore) IPO.
The offer will be the biggest in the country after Coal India's IPO in 2010 wherein the state-owned had garnered $2.03 billion ( ₹15,200 crore).
The price band for the IPO will be between ₹2,080-2,150 per share, implying an enterprise value of $19.3 to $19.9 billion.
The IPO comprises issuance of fresh equity shares worth ₹8,300 crore and offer for sale (OFS) by existing shareholders to the tune of ₹10,000 crore.
Through the OFS, One97 Communications Managing Director and CEO Vijay Shekhar Sharma will offload shares worth up to $53.94 million ( ₹402.65 crore) while Antfin (Netherlands) Holdings will sell shares to the tune of $643 million ( ₹4,704.43 crore).
According to research firm Redseer, Paytm has mobile payments transaction volume market share of approximately 40 per cent, and wallet payments transaction market share of 65-70 per cent in India as of FY 2021.
{{/usCountry}}According to research firm Redseer, Paytm has mobile payments transaction volume market share of approximately 40 per cent, and wallet payments transaction market share of 65-70 per cent in India as of FY 2021.
{{/usCountry}}With several factors, including government initiatives and reforms, improving technology, increasing reach and awareness, digital payments are expected to more than double from $20 trillion in FY 2021 to $40-50 trillion by FY 2026.