Paytm will allot shares worth Rs. 8,235 Crore wins over 100 institutional investors for the IPO

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Ant Group-backed fintech firm Paytm said it had allotted shares worth Rs. 8235 crore to more than 100 institutional investors, including the Singapore government, ahead of what is expected to be India’s largest public listing.

Paytm’s offering of up to Rs. 18,300 crore, up from Rs. 16,600 crore last month, attracted the interest of 122 institutional investors who purchased more than 38.3 million shares for Rs. 2,150 pieces per piece, according to an official document dated November 3rd.

Investors included BlackRock Global Funds, Canada Pension Plan Investment Board, and Abu Dhabi Investment Authority.

Paytm was launched as a mobile charging platform a decade ago and grew rapidly after the ride service company Uber listed it as a fast payment option. Its use continued to grow in 2016 when a ban on high-currency banknotes in India encouraged digital payments.

Paytm has since branched into services such as insurance and gold sales, movie and plane tickets, and bank deposits and wire transfers.

The company’s offering opens on Monday and top investor Ant Financial, with a 27.9 percent stake in Paytm, plans to sell shares valued at Rs. 4,704 million euros.

Several companies, including Paytm, entered capital markets on a capital-raising frenzy this year after hitting record highs in the Indian stock market, which this year outperformed Asian competitors.

In India, 157 companies, including TPG-backed Nykaa, Oyo Hotels and Rooms, and online insurance aggregator Policybazaar, have $ 17.22 billion (approximately 63,569 crore) this year through October 31, according to Refinitiv -Data from 49 companies in the same period last year.

Paytm’s IPO is likely to be the largest in the country’s corporate history, breaking a record for Coal India Ltd of Rs. 15,000 crore over a decade earlier.

© Thomson Reuters 2021

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