Image Source : FREEPIK/INDIA TV (EDITED) Paytm IPO listing today, grey market premium hints tepid debut likely
Highlights
Paytm’s Rs 18,300 cr IPO was the biggest in the country’s corporate history
Paytm is the second largest fintech IPO of 2021 globally, after Spain-based Allfunds
Paytm allotted its shares at 2,150 apiece, valuing the company at Rs 1.39 lakh crore
Paytm IPO will be listed on the NSE and BSE today. Paytm earlier allocated shares at the upper price band of Rs 2,150 apiece. Based on the bid received for Paytm’s Rs 18,300 crore IPO, the digital payments and financial services firm will list an enterprise valuation of Rs 1,49,428 crore or slightly over USD 20 billion at an exchange rate of 74.35, thus becoming one of India’s most valued companies.
As per the grey market, Paytm share price may have a tepid debut. Paytm grey market premium is negative. It is trading at a discount of around Rs 20 to the issue price.
Paytm IPO was the country’s biggest IPO. It was subscribed 1.89 times with institutional buyers including FIIs flooding the share sale with offers seeking 2.79 times the number of shares reserved for them. The company saw participation from blue chip investors like Blackrock, Canada Pension Plan Investment Board, GIC, ADIA, APG, City of New York, Texas Teachers Retirement, NPS Japan, University of Texas, NTUC Pension out of Singapore, University of Cambridge etc. Retail investors lapped up for 1.66 times the 87 lakh shares reserved for them.
Paytm IPO’s issue size meant that the sheer value of its retail size is much larger than that seen in recent internet IPOs like that of Zomato or Nykaa, combined. Some of the largest IPOs before like Coal India’s had seen the highest subscription on the final day of bidding. Coal India had closed at 15.28 times on the last day. The same trend was seen even for recent, and significantly much smaller IPOs like Nykaa and PolicyBazaar, where more than 90 per cent of the QIB bids, and also overall bids came in on Day 3.
Paytm IPO comprised a fresh issue of equity shares worth Rs 8,300 crore and an offer for sale (OFS) of shares worth up to Rs 10,000 crore. The OFS, or secondary share sale, consisted of the sale of shares worth up to Rs 402.65 crore by founder Vijay Shekhar Sharma.
The company set aside 75 per cent of the offer for QIBs, 15 per cent for non-institutional investors, and the remaining 10 per cent for retail investors.
Incorporated in 2000, One97 Communications is India’s leading digital ecosystem for consumers and merchants. It offers a range of services to the users – payment services and financial services.
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