Paytm IPO subscribed 48 percent as the company goes into the last day of issue, Garners offers 23.5 million shares so far

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The initial public offering (IPO) of the Indian fintech company Paytm of up to Rs. 18,300 crore was 48 percent subscribed on the second day of the issuing period and received offers for 23.5 million shares, according to stock market data on Tuesday.

Earlier in the day, the Canada Pension Plan Investment Board ordered around 6 million shares in the ledger, a source told Reuters. At the upper end of the price range, this equates to around Rs. 1,280 million euros.

Paytm has offered 48.3 million shares for sale in what is likely to be India’s largest public listing, beating the Rs of miner Coal India. 15,000 crore IPO more than a decade ago.

Ant Group-backed Paytm said last week it had shares valued at Rs. 8,235 crore with more than 100 institutional investors including the Singapore government, 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 grew in 2016 when a ban on high currency banknotes in India encouraged digital payments.

Paytm’s offering opened to retail investors on November 8th, the day Indian Prime Minister Narendra Modi announced the currency ban or demonetization five years ago.

Founder and CEO Vijay Shekhar Sharma then welcomed Modi’s move and described it as “the greatest, boldest and most ambitious surgical blow by a government in the world”.

A year earlier, Sharma, the son of a teacher from a small town in India’s most populous northern state of Uttar Pradesh, won the support of Chinese billionaire Jack Ma’s Ant Financial for Paytm.

Over the years, Sharma, who has often praised Ma and posted pictures with him, has also attracted other large investors to his firm, including SoftBank and Berkshire Hathaway.

Those stake sales helped him reach a net worth of $ 2.4 billion (approximately Rs.17,806 billion), according to Forbes.

On Monday when Paytm opened the deals, Sharma visited an ancient Hindu shrine in southern India and posted a picture on Twitter.

“I came here to seek God’s blessing on the entire Paytm family,” Sharma said.

Paytm intends to raise approximately $ 2.2 billion (approximately Rs.16,322 billion) through the IPO at a valuation of US $ 20 billion (approximately Rs.148,396 billion).

Bids close on Wednesday and Paytm will be listed on Indian stock exchanges on November 18th.

Top investor Ant Financial, who owns 27.9 percent of Paytm, plans to sell shares valued at Rs. 4,704 million euros.

© Thomson Reuters 2021

Disclosure: Paytm’s parent company One97 is an investor in NDTV’s Gadgets 360.

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