India’s Paytm stock tops $2.5 billion IPO
Paytm, a payments company that markets an all-in-one app, priced its 85.1 million-share issue at Rs 2,150 ($28.9) each. It had flagged a price range of Rs 2,080-2,150 per share for the deal.
The success of the IPO is being seen as a harbinger of more big-ticket deals to come next year.
“It was expected that Paytm would price the deal at the top-end as the company’s anchor-allocation exceeded 10x,” said Shifra Samsudin, equity analyst at Lightstream Research.
The company, formally known as One97 Communications, which had already raised $1.1 billion from anchor investors, received bids worth $2.64 billion for the remaining 48.4 million shares, according to stock exchange data published Wednesday. , or 1.89 times.
Paytm, which offers a wide range of services from banking, shopping, movie and travel ticketing to gaming, is expected to make its debut in the Indian markets on November 18, the company said in its prospectus.
“Paytm’s valuation is expensive but we think there will be some advantage in listing,” said Samsudin.
Paytm is backed by large investors such as Ant Group and SoftBank’s Vision Fund, and anchor investors include big names such as BlackRock and Canada Pension Plan Investment Board.
Arun Kejriwal, founder of an independent research firm, said, “Qualified institutional buyers who have bought into the company, knowing what they are investing in, will not create panic on day one. They are not looking for one day profit. Huh.”
Big investors are cutting their stake through IPO. Ant Group, which had a 28% stake in Paytm, is selling shares worth Rs 47.04 billion and will be left with a 23% stake. SoftBank’s Vision Fund is reducing its stake by 2.5 percentage points to 16 per cent with a share sale of Rs 16.89 billion.
(Only the title and image of this report may have been reworked by Business Standard staff; the rest of the content is generated automatically from a syndicated feed.)
</div><div style="background: #fee8dd; padding: 12px; border: dashed 1px black; margin-bottom: 20px;">
Business Standard has always worked hard to provide updated information and commentary on events that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering has only reinforced our resolve and commitment to these ideals. Even during these difficult times arising out of COVID-19, we are committed to keeping you informed and updated with relevant news, authoritative views and scathing comments on relevant relevant issues.
However, we have a request.
As we grapple with the economic impact of the pandemic, we need your support even more so that we can continue to provide you with more quality content. Our subscription model has received an encouraging response from many of you who have subscribed to our online content. Subscribing to more of our online content can only help us achieve our goals of providing you with better and more relevant content. We believe in independent, unbiased and credible journalism. Your support through more subscriptions can help us practice the journalism we’re committed to.
support quality journalism and Subscribe to Business Standard,
this is an unedited and auto-generated supporting article of the syndicated news feed are actualy credit for owners of origin centers. intended only to inform and update you about Sakari naukri , result , UPSC , Exam Jobs etc. for Provides real or authentic news. also Original content may not have been modified or edited by Rojgar samachar team members.