The Initial Public Offering, or IPO, of financial services provider Paytm has recently concluded and the share allotment process is already done. Paytm IPO, organised by its parent company One97 Communications, received a brisk response from investors. The Paytm IPO was subscribed 1.89 as of its final day of bidding, accroding to data from stock exchange. However, on Tuesday, November 16, Paytm shares had dried up in the grey market, days ahead of its listing on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). This was not a good sign for the company, which has floated India’s biggest public offer of Rs 18,300 crore.
One97 communications, the parent company of Paytm, has received bids for 9.14 crore shares against 4.83 crore shares offered for sale. This has been largely done on support from qualified institutional buyers, who have oversubscribed the IPO since its opening day. QIBs subscribed 2.79 times the portion reserved for them, while retail buyers bid 1.66 times the part set aside for them. Non-institutional buyers have booked 24 per cent of the shares kept aside for them.
Paytm IPO Listing, Refund Dates
Paytm IPO is set to be listed on the National Stock Exchange and Bombay stock exchange. The listing will likely be done on November 18. The basis of allotment of an IPO is when its registrar publishes a document after finalising the share allocation. This is based on regulatory guidelines. The refunds for those who will not be selected in the listing will be done on November 16 to their bank accounts. The credit to demat account will be done on November 17. Bidders of the offer can check the Paytm IPO listing on the registrar Link Intime India Limited website or on the BSE website.
Paytm IPO GMP Today
The shares of Paytm were trading at its lowest premium in the grey market on Tuesday among the IPOs that were trading at the time. The grey markt premium of Paytm was at Rs 30, with shares available at Rs 2,180 against the upper price limit of Rs 2,150 per share. This was a 1.4 per cent increase over the final issue price. The premium has declined from 2.3 per cent as seen last week, according to IPO Watch.
Paytm IPO Offer Details:
The offer was a mix of fresh issue of Rs 8,300 crore and an offer for sale (OFS) of Rs 10,000 crore by selling shareholders including founder and investors.
Founder Vijay Shekhar Sharma sold Rs 402.65 crore worth of shares through OFS. Among investors, Antfin (Netherlands) Holding B.V. offloaded up to Rs 4,704.43 crore worth of shares, Alibaba.com Singapore E-Commerce sold up to Rs 784.82 crore of shares, SVF Panther (Cayman) Rs 1,689.03 crore, and BH International Holdings sold Rs 301.77 crore worth of shares via OFS.
Elevation Capital V FII Holdings and Elevation Capital V offloaded Rs 75.02 crore and Rs 64.01 crore worth of shares, while SAIF III Mauritius Company, and SAIF Partners India IV sold Rs 1,327.65 crore and Rs 563.63 crore worth of shares via OFS. Mountain Capital Fund L.P., RNT Associates, DG PTM LP, Ravi Datla, Amit Khanna, Prakhar Srivastava, Saurabh Sharma, Manas Bisht, Sanjay S Wadhwa, SasiRaman Venkatesan, N Ramkumar and Abhay Sharma offloaded Rs 86.98 crore of shares.
Paytm IPO Issue Objective
The company is going to utilise net proceeds from its fresh issue for 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 . The fresh issue fund will also be used for new business initiatives, acquisitions and strategic partnerships and general corporate purposes. The portion from OFS will go to selling shareholders.