Paytm IPO: All you need to know about India's biggest share sale

At Rs 18,300 crore, Paytm issue will be the biggest since state-run miner Coal India garnered Rs 15,000 crore from the public in its 2010 IPO.

Key Highlights

• The proposed Rs 18,300-crore IPO will make Paytm one of India’s 50 most valuable companies

• Paytm is India’s leading digital ecosystem for consumers and merchants, with over 3.37 crore registered consumers and over 2.18 crore registered merchants as of June 30, 2021, as per Redseer

• At Rs 2,150/share upper-band of issue price, Paytm will have a post-money valuation of Rs 1,39,378.84 crore, which will make it 36th most valued company among all public companies in India

India’s biggest Initial Public Offering (IPO) opens for subscription on Monday wherein Rs 18,300 crore or $2.46 billion worth shares of One97 Communications Ltd (OCL), which operates payments & fintech behemoth Paytm, will be up for bidding. The issue will be the biggest since state-run miner Coal India garnered Rs 15,745 crore from the public in its October 2010 IPO.

OCL is the holding company that also owns and operates the Paytm Super app and other allied apps such as Paytm Money and Paytm for Business.

Paytm IPO date & share price

The Paytm IPO will open for subscription on November 8 and close on November 10. The price band of the issue was fixed at Rs 2,080 and Rs 2,150 per equity share.

Offer details

The offer consists of fresh shares worth Rs 8,300 crore and an offer for sale (OFS) by existing shareholders to the tune of Rs 10,000 crore. OCL MD & CEO Vijay Shekhar Sharma will sell shares worth Rs 402.65 crore, Antfin (Netherlands) Holdings B.V. will sell Rs 4,704 crore worth of shares, Alibaba.com Singapore E-commerce Singapore will do away with Rs 784.82 crore, SVF Panther (Cayman) Rs 1,689.03 crore, and BH International Holdings will offload Rs 301.77 crore worth of shares in the OFS.

Other selling shareholders include Elevation Capital V FII Holdings and Elevation Capital V which will offload Rs 75.02 crore and Rs 64.01 crore worth of shares respectively, SAIF III Mauritius Company, and SAIF Partners India IV will sell Rs 1,327.65 crore and Rs 563.63 crore worth shares via OFS.

Lot size & minimum investment

The lot size of Paytm IPO consists 6 shares amounting to Rs 12,900 at the higher price band of Rs 2,150. A retail investor can place bids for a maximum of 15 lots or 90 shares amounting to Rs 193,500. The allotment of shares for the Paytm IPO will be finalised by November 15 and the shares will be credited to accounts of successful bidders by November 17.

Anchor issue

The company raised Rs 8,235 crore from anchor investors such as BlackRock, the world’s largest asset manager, Canada Pension Plan Investment Board (CPPIB), Birla MF, GIC, along with other bluechip funds. The anchor round saw oversubscription of up to 10 times.

IPO objective

Proceeds from the IPO will be utilised towards growing and strengthening Paytm ecosystem, including through acquisition and retention of consumers and merchants and providing them with greater access to technology and financial services and investing in new business initiatives, acquisitions and strategic partnerships, the company said.