Paytm IPO update: Leadership in digital payment to drive future
One97 Communications-owned Paytm opened its initial public offering (IPO) for subscription today.
This is the largest-ever public issue in the history of Indian capital markets.
The Rs 18,300-croreIPO had been subscribed 8% on November 8, the first day of bidding, receiving bids for 37.23 lakh equity shares against offer size of 4.83 crore shares.
The portion set aside for retail investors was subscribed 42%, while non-institutional investors have subscribed for nearly 51,186 equity shares against 1.31 crore shares reserved for them, and qualified institutional buyers have put in bids for 2,310 shares against 2.63 crore shares set aside for them.
Experts believe that the Paytm IPO price band of Rs 2,080-2,150 is significantly low from the highs of Rs 3,700 trading in the unlisted market a couple of weeks ago. Low investor interest in pre-IPO placement at higher valuations have resulted in the company setting a lower price band.
However, the IPO price band is relatively attractive now and values the company at around Rs 1.48 lakh crore ($20 billion) at the upper band.
The company was valued at $16bn in 2018 when it last raised a large investment round. The company has come a long way since then and will now stand to benefit from its leadership in volumes for payments, ticket booking, mutual funds, fast-tags etc.
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