Paytm IPO opens today: Key points to know

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Paytm launched its initial public offering on Monday, hoping to raise Rs 18,300 crore
Investors will be able to purchase shares at a price range of Rs 2,085-2,150 per share
The minimum bid lot size has been set at 6 equity shares, and subsequent lots will be in multiples of 6 shares

Written By:Yash

Updated: November 07 2021 06:47:28 PM ET New Delhi, Delhi, India

The payments platform Paytm’s parent company, One97 Communications Ltd., launched its initial public offering on Monday, hoping to raise Rs 18,300 crore, making it the largest initial offering in the Indian market ever. The three-day offering ends on Wednesday, with buyers able to purchase shares at a price range of Rs 2,085-2,150 per share.

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The IPO consists of a new share issue for Rs 8,300 crore and a share sale by existing shareholders totaling Rs 10,000 crore. One97 Communications is projected to be valued at $20 billion (approximately Rs 1.5 lakh crore) as a result of the offering.

According to the regulatory filing, the major investors selling their stake in the offer for sale include Antfin (Netherlands) Holding BV, which is selling Rs 4,700 crore worth of shares, SVF Panther (Cayman) Ltd., which is selling Rs 1,689 crore worth of shares, Alibaba.com Singapore ECommerce Pvt., which is selling shares worth Rs 785 crore, and founder Vijay Shekhar Sharma, who is selling shares worth Rs 402 crore.

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The minimum bid lot size has been set at 6 equity shares, and subsequent lots will be in multiples of 6 shares. As a result, ordinary investors can invest a minimum of Rs 12,900 in a single lot and a maximum of Rs 1,93,500 in 15 lots. A maximum of 75% of the offer is reserved for qualified institutional buyers, 15% for non-institutional investors, and 10% for retail investors.

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According to IPO Watch, Paytm is available in the grey market for Rs 2,300 per share, a premium of Rs 150 or 7% over the upper price band of Rs 2,150 per share.

Also Read| Paytm gets SEBI nod for biggest Indian IPO, listing likely in mid-November

The share distribution will be completed by November 15, and funds will be returned to unsuccessful investors by November 16. By November 17, eligible investors will have their shares in their Demat accounts. The trading of equity shares on the BSE and NSE will begin on November 18.