Paytm IPO: India’s Paytm stock tops $2.5 billion IPO

NEW DELHI, Nov 12 : Paytm has priced its shares at the top of the price range for its Rs 183 billion initial public offering (IPO), a prospectus showed on Friday, even as India’s largest public offering. Received it with less enthusiasm. of other technology firms.

Paytm, a payments company that markets an all-in-one app, priced its 85.1 million-share issue at Rs 2,150 ($28.9) each. It had flagged a price range of Rs 2,080-2,150 per share for the deal.

The success of the IPO is being seen as a harbinger of more big-ticket deals to come next year.

“It was expected that Paytm would price the deal at the top-end as the company’s anchor-allocation exceeded 10x,” said Shifra Samsudin, equity analyst at Lightstream Research.

The company, formally known as One97 Communications, which had already raised $1.1 billion from anchor investors, received bids worth $2.64 billion for the remaining 48.4 million shares, according to stock exchange data published Wednesday. , or 1.89 times.

Paytm, which offers a wide range of services from banking, shopping, movie and travel ticketing to gaming, is expected to make its debut in the Indian markets on November 18, the company said in its prospectus.

“Paytm’s valuation is expensive but we think there will be some advantage in listing,” said Samsudin.

Paytm is backed by large investors like Ant Group (688688.SS) and SoftBank (9984.T) Vision Fund and anchor investors include big names like BlackRock and Canada Pension Plan Investment Board.

Arun Kejriwal, founder of an independent research firm, said, “Qualified institutional buyers who have bought into the company, knowing what they are investing in, will not create panic on day one. They are not looking for one day profit. Huh.”

Big investors are cutting their stake through IPO. Ant Group, which had a 28% stake in Paytm, is selling shares worth Rs 47.04 billion and will be left with a 23% stake. SoftBank’s Vision Fund is reducing its stake by 2.5 percentage points to 16 per cent with a share sale of Rs 16.89 billion.