Paytm’s much-awaited IPO is all set to launch on November 8, 2021
Paytm’s Initial Public Offer (IPO) is set to launch on Monday, November 8, 2021 and is priced at Rs 18,300 crore, which is considered to be the biggest ever in India.
Paytm’s parent company One97 Communications is going to launch IPO.
Let’s have a look at some important information related to Paytm IPO:
Opening and closing dates:
The Paytm Initial Public Offer will open for subscription on Monday, November 8 and close on Wednesday, November 10. Interested investors can bid in six equity shares and multiples. At the upper price band, investors will have to pay Rs 12,900 to get a single lot of One97 Communications.
IPO Price:
The parent company has fixed the price band for Paytm’s upcoming IPO at Rs 2,080 to Rs 2,150 per equity share. Paytm will raise Rs 18,300 crore at the upper price band.
Problem Size:
The IPO includes issue of fresh equity shares worth Rs 8,300 crore and Offer for Sale (OFS) of Rs 10,000 crore by existing shareholders.
Apart from Paytm Managing Director and CEO Vijay Shekhar Sharma, investors such as Japan’s SoftBank, China’s Ant Group and Alibaba as well as Elevation Capital are among the top investors to reduce their shares in the company.
Mr. Sharma will sell 18.73 lakh shares worth approximately Rs 402.70 crore.
Quota Break-up:
The quota for retail investors has been fixed at 10 per cent of the net offer. Qualified Institutional Buyers (QIBs) quota has been fixed at 75 per cent while Non-Institutional Investors (NII) quota has been fixed at 15 per cent.
Paytm is going to use the returns from the IPO for various activities such as “acquisition of consumers and merchants and giving them greater access to technology and financial services”.
It will also invest in new business ventures, partnerships and acquisitions, while the remaining funds will be used for other corporate activities.
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