Paytm IPO raises Rs 8,235 crore from 122 anchor investors

Paytm IPO: One97 Communications, the parent entity of digital payments firm Paytm, has raised Rs 8,235 crore from 122 anchor investors ahead of its Rs 18,300 crore initial public offering (IPO).

According to the data available from the stock exchanges, the company issued 38,302,326 equity shares at a price of Rs 2,150 per share.

The anchor investor round saw participation from likes of Blackrock Global Funds, Canada Pension Plan Investment Board, Aditya Birla Sun Life Trustee, Government of Singapore, Vanguard, Schroder International Selection Fund, Sands Capital Funds, Mirae Asset, Marshall Wace Investment Strategies, Fidelity, UBS, Janus Henderson, Nomura India Investment Fund, HDFC Mutual Fund, Morgan Stanley Asia (Singapore), Goldman Sachs (Singapore), among others.

With this, Paytm has already secured 45 per cent of its Rs 18,300 crore initial public offer (IPO). Paytm’s anchor round’s size alone can be termed as the eighth largest private company IPO in India.

The IPO will be opening on Monday, November 8, 2021, and will be available for public subscription till Wednesday, November 10, 2021. The issue has a price band of Rs 2,080-2,150 per share, implying a valuation of around Rs 1.48 lakh crore. The Paytm IPO will have 75 per cent reserved for qualified institutional buyers (QIBs) and 15 per cent will be reserved for non-institutional investors (NIIs). The remaining 10 per cent of the issue will be available for retail investors.

At Rs 18,300 crore, Paytm’s IPO is set to topple the IPO of state-run Coal India as the largest ever in the country. Coal India had raised over Rs 15,000 crore in 2010.

The Paytm IPO comprises issuance of fresh equity shares worth Rs 8,300 crore and offer for sale (OFS) of Rs 10,000 crore by existing shareholders including its founder Vijay Shekhar Sharma along with Ant Financials, Alibaba, Elevation Capital, and SAIF III Mauritius Company, Saif Partners, as per the information provided in the red herring prospectus (RHP) available on the National Stock Exchange (NSE).

The company’s IPO price band values it in the range of $19.3-19.9 billion. At current exchange rates, the enterprise value is Rs 1.44 lakh crore to Rs 1.48 lakh crore.

The company skipped the pre-IPO funding round to expedite the launch of the initial share sale.

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