Paytm to Raise Rs 8,250 Crore from Key Investors; BlackRock, Canada Pension among bidders

Paytm to Raise Rs 8,250 Crore from Key Investors; BlackRock, Canada Pension among bidders

Highlights

  • Paytm’s Anchor Allowance will close tomorrow (November 3).
  • The largest IPO in India’s capital market history is slated to launch after Diwali on November 8.
  • The company has already increased the size of its issue to Rs 18,300 crore from Rs 16,600 crore earlier.

New Delhi: Ahead of the proposed initial public offering (IPO), One97 Communications Ltd, the parent company of the payments service Paytm, is expected to raise $ 1.1 billion or Rs 8,250 crore from key investors. BlackRock, the Canada Pension Plan Investment Board (CPPIB) and sovereign wealth funds like Singapore are among the bidders for the $ 1.1 billion in shares that Paytm is seeking to sell to institutional investors.

Paytm’s Anchor Allowance will close tomorrow (November 3).

The largest IPO in India’s capital market history is slated to launch after Diwali on November 8 and will close on November 10.

It should be mentioned here that in every IPO, lead investors are offered a portion of the shares reserved for qualified institutional buyers one day before the IPO opens for subscription to the public. However, primary investors cannot sell their shares for 30 days from the listing of the shares.

The company has already increased the size of its issue to Rs 18,300 crore from Rs 16,600 crore earlier. The problem involves the sale of fresh stocks worth Rs 8,300 crore and an offer to sell (OFS) component of Rs 10,000 crore. Half of the shares that will be sold through the OFS will come from Paytm’s largest investor, Ant Financial, which currently owns 29.6% of the company.

The company has set the share price range for the IPO at Rs 2,080 – Rs 2,150 per share.

On the new issue proceeds of Rs 8,300 crore, Paytm plans to use Rs 4,300 crore to expand its existing business lines and acquire new traders and customers. In addition to payment services, Paytm has expanded into financial services, including credit cards, stock and mutual fund brokerage, and other financial products.

For the three months ended June 2021, Paytm reported revenue of Rs 948 crore, up 46% year-over-year, thanks to its payments and financial services offerings. Its losses were reduced to Rs 382 crore for the aforementioned quarter.


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