Paytm IPO: The issue of digital payment company Paytm will open on November 8 and close on November 10. Ahead of the launch of its blockbuster IPO, the company plans to raise $1 billion from anchor investors.
Paytm is preparing to raise a total of Rs 18,300 crore from its IPO. In this, a fresh issue of Rs 8300 crore will be issued. Whereas shares worth Rs 10,000 crore will be sold in Offer for Sale (OFS).
After Coal India, Paytm’s IPO is the biggest issue ever. Earlier in 2010, Coal India had raised Rs 15,200 crore from its issue.
What is price band?
The issue price of Paytm has been fixed at Rs 2080-2150. According to Sudarshan Ramakrishna, managing director, Goldman Sachs India Securities, the enterprise value of Paytm is in the range of $19.3 billion to $19.9 billion, depending on the price band.
Samvat 2078: Keep an eye on these sectors in the new year, can shine your luck
Due to differences over valuations, Paytm has canceled its pre-IPO funding plan. Vijay Shekhar Sharma, managing director and CEO of Paytm’s parent company One97, is about to sell shares worth Rs 402.65 crore through the offer for sale. Whereas Antfin (Netherlands) Holdings is about to sell shares worth Rs 4,704.43 crore.
Apart from this, Alibaba.com Singapore E-commerce will sell up to Rs 784.82 crore and Elevation Capital V FII Holdings will sell up to Rs 75.02 crore.
What’s going on GMP?
The Gray Market Premium (GMP) of Paytm’s issue in the unlisted market is running at Rs 135. The issue price of Paytm is Rs 2080-2150, hence its unlisted shares are trading at Rs 2285 (2150+135).
who has how much stake
Paytm founder Vijay Shekhar Sharma and other shareholders will sell some of their stake through an offer for sale. Among the company’s major investors, Alibaba and its subsidiary Ant Group hold 38 percent, Elevation Capital holds 17.65 percent and Japan’s SoftBank holds 18.73 percent. Vijay Sharma holds about a percentage of the holding and will no longer be the promoter of Paytm after the listing.
Morgan Stanley, Goldman Sachs, Axis Capital, ICICI Securities, JP Morgan, Citi and HDFC Bank are acting as investment bankers for the IPO, according to the DRHP filed with SEBI.
Facebook us for social media updates (https://www.facebook.com/moneycontrolhindi/) and Twitter (.) to follow.
.