Paytm IPO

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08 Nov, 2021

7 min read

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Paytm is one of the biggest fintech platforms in India today, and is one of the latest IPOs in the Indian market. Read on to know more about the Paytm IPO, issue size and launch date.

Introduction:

Paytm, one of the fastest-growing digital payments companies in India is launching its initial public offering (IPO) in the second week of November 2021. The company is planning on raising about Rs. 8,000 crores through its blockbuster IPO. Read on to know more about the Paytm IPO launch date, issue size, and other essential details.

About Paytm

Paytm was founded in 2010, and it was mainly introduced as a platform for carrying out mobile recharges. After it was listed by Uber as a payment option, it grew rapidly over the next few years. This growth was further accelerated due to the 2016 government ban in India on high-value currency notes. Since then, the digital payment platform has branched out into bank deposits, flight payments, movie payments, online food delivery service payments, insurance payments and other such transactions. 

The stock market in India has seen record highs this year, prompting several corporations to launch their fund-raising efforts. Many companies have outperformed their contemporaries in Asia this year, and have good prospects for their IPOs. Paytm is one of the companies trying to tap into the capital markets this year. Valued at 16 billion US dollars currently, Paytm is shooting for a valuation between 19.3 to 19.9 billion USD with the launch of its IPO.

About the Paytm IPO

Paytm’s IPO can break the record for the biggest corporate IPO in India, which is currently held by Coal India. The trajectory of this platform from a mobile recharging portal to an all-around digital wallet in various branches has been meteoric. The parent company- One 97 communications, is aiming to raise Rs. 18,300 crore, out of which about Rs.10,000 crore will be raised through an offer for sale (OfS) from current shareholders and Rs.8,300 crore will be via fresh issue. The company was funded through anchor investors prior to the launch of the IPO. The Rs.8,300 worth of shares include contributions from institutional investors such as the government of Singapore. Touted as India’s next biggest stock market listing, the IPO will be launched on November 8th, 2021. The price band of the offering is fixed at Rs.2,080-2,150 per share.

Paytm’s performance

As a leading company, Paytm’s performance has been consistently on the rise. Here is a quick look at the fintech giant’s recent milestones, and the prospects of its IPO:

  • Paytm is backed by big names such as Berkshire Hathaway, SoftBank’s Vision Fund and AntFin Group, which has the largest stake in the company at almost 30%.
  • The 2016 government-decreed demonetisation gave a push to Paytm’s progress in India.
  • The digital payment portal saw an increase of 62% in operations revenues in the first quarter of 2021-22 (FY).
  • In the fiscal year of 2021, Paytm registered a GMV or gross merchandise value of about Rs.4 lakh crore. 
  • In the first quarter of the fiscal year 2022, Paytm’s revenue from financial services and payment services stood at Rs. 689.4 crore, which made up a whopping 77% of its total revenue. In June 2021, the company had incurred an Rs.2.9 crore loss at the end of the quarter. 
  • Skipping pre-IPO funding, Paytm has chosen to expedite its initial sale of shares. 
  • The Paytm IPO has received clearance from the Securities and Exchanges Board, which is the capital market regulator. 
  • The Paytm shares will be listed on the Bombay Stock Exchange and the National Stock Exchange on November 18th, 2021.

Paytm IPO Details

The Paytm IPO issue size is Rs. 8,300 crores in fresh equity shares and Rs.10,000 crore for OfS. The total offer of Rs.18,300 crore is the largest in India, after the 2010 Coal India IPO, which raised Rs.15,200 crore.

The IPO price band is between Rs. 2,080-2,150 for each share.

The CEO and Managing Director of Paytm’s parent company, Vijay Shekhar  Sharma is going to offload Rs.402.65 crore in shares, and the Ant group will sell Rs.4,704 crore worth of shares.

The Paytm IPO launch date is November 8th, and the closing date is November 10th.  Here is a quick look at all the important Paytm IPO dates:

  • Offer opening date: November 8th, 2021
  • Offer closing date: November 10th, 2021
  • Basis of allotment finalisation: November 15th, 2021
  • Initiation of share refunds: November 16th, 2021
  • Credit of Paytm equity shares: November 17th, 2021
  • Listing date: November 18th, 2021

The Paytm IPO will be listed on the BSE as well as the NSE. The company is planning to use the proceeds from their much-anticipated initial public offering for growing their business branches and acquiring new customers and merchants.  The pre-launch funding round was skipped in favour of launching the initial sale of shares earlier.

Conclusion

The onset of the pandemic also meant that financial transactions went almost entirely digital, thus making digital wallets a staple in every individual’s phone. As an all-rounder, Paytm has become a mainstay thanks to the quick, easy and secure transaction facilities it offers. Investors will be eager to get a stake in this company, and the rush to buy shares will be taken to various online platforms.

FAQs

Ques. When is the bidding date for Paytm IPO?
Ans. The IPO offering will get open from November 8th and the offer closing date will be November 10th.  The finalized allotment will be done on November 15th.

Ques. How can we check the allotment list?
Ans. The allotment list will be available on the BSE and NSE websites. Visit the BSE/NSE website and select ‘Equity’, tap on Paytm and enter the application number along with the PAN. The allotment will be shown there.

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