05 Nov , 2021 By : Kanchan Joshi
Paytm has raised shares worth Rs8,235 crore ($1.11 billion) from more than 100 institutional investors, including the government of Singapore, ahead of what is expected to be India's largest stock market listing. Paytm's parent One97 Communications will come out with its initial public offering (IPO) next week on Monday, November 8 with the price band fixed at Rs2,080-2,150 per share.
Paytm shares premium has slipped in the grey market from yesterday, and are commanding a premium of Rs125 today, say market observers. The shares of the company are expected to list on leading stock exchanges BSE and NSE on November 18, 2021.
The IPO, which concludes on November 10, comprises issuance of fresh equity shares worth Rs8,300 crore and Offer for Sale (OFS) by existing shareholders to the tune of Rs10,000 crore. Paytm's IPO is likely to be the biggest in the country's corporate history, breaking a record held by Coal India Ltd, which raised over Rs15,000 crore more than a decade earlier.
The company plans to use proceeds of the fresh issue to grow its business lines and acquire new merchants and customers. Paytm skipped pre-IPO funding round to expedite launch of the initial share sale.
Launched a decade ago as a platform for mobile recharging, Paytm grew quickly after ride-hailing firm Uber listed it as a quick payment option. Its use swelled further in 2016 when a ban on high-value currency bank notes in India boosted digital payments. Paytm has since branched out into services including insurance and gold sales, movie and flight ticketing, and bank deposits and remittances.
Several companies including Paytm have tapped capital markets this year in a fund-raising frenzy on the back of record highs hit by the Indian stock market, which has outperformed Asian peers so far this year.
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