Paytm has priced its shares at the top of the range for an initial public offering (IPO) of Rs 18,300 crore, a prospectus showed on Friday, even though the country’s largest public issue met with less enthusiasm than other tech firms. was received.
Paytm, a payments company that markets an all-in-one app, priced its 8.51 crore-share issue at Rs 2,150. It had fixed a price range of Rs 2,080-2,150 per share for the deal.
The success of the IPO is being seen as a harbinger of more big-ticket deals to come next year.
“It was expected that Paytm would price the deal at the top-end as the company’s anchor-allocation exceeded 10x,” said Shifra Samsudin, equity analyst at Lightstream Research.
The company, formally known as One97 Communications, which had already raised $1.1 billion from anchor investors, has received bids worth $2.64 billion for the remaining 4.84 million shares, according to stock exchange data published on Wednesday. , or 1.89 times.
Paytm, which offers a wide range of services ranging from banking, shopping, movie and travel ticketing to gaming, is expected to make its debut on the exchanges on November 18, the company said in its prospectus.
“Paytm’s valuation is expensive but we think there will be some advantage in listing,” said Samsudin.
Paytm is backed by large investors such as Ant Group and SoftBank’s Vision Fund, and anchor investors include big names such as BlackRock and Canada Pension Plan Investment Board.
Arun Kejriwal, founder of an independent research firm, said, “Qualified institutional buyers who have bought into the company, knowing what they are investing in, will not create panic on day one. They are not looking for one day profit. Huh.”
Big investors are cutting their stake through IPO. Ant Group, which held 28 per cent stake in Paytm, is selling shares worth Rs 4,704 crore and will be left with 23 per cent stake. SoftBank’s Vision Fund is reducing its stake by 2.5 percentage points to 16 per cent with a share sale of Rs 1,689 crore.
,