The initial public offering (IPO) of One97 Communications-owned Paytm was subscribed fully on the third and final day of bidding today. India’s biggest IPO was subscribed 1.35 times, receiving bids for 6.55 crore equity shares against offer size of 4.83 crore shares.
The portion set aside for retail investors was subscribed 1.57 times, while the reserved portion of non-institutional investors was subscribed 15 percent, and qualified institutional buyers have put in bids 1.89 times the portion set aside for them.
The IPO through which the company aims to collect Rs 18,300 crore will close today. The issue size of the share sale has been revised from Rs 16,600 crore.
The Vijay Shekhar Sharma-led firm plans to make its market debut on November 18. On October 22, Paytm had received market regulator Sebi’s nod for the share sale.
The Paytm share sale is India’s largest IPO till date, surpassing Coal India (Rs 15,475-crore IPO) and Reliance Power (Rs 11,700 crore IPO) in terms of issue size. The IPO comprises a fresh issue of equity shares of the face value of Rs 1 each, aggregating to Rs 8,300 crore and the offer for sale by the existing shareholders, aggregating to Rs 10,000 crore.
JPMorgan Chase, Morgan Stanley, ICICI Securities, Goldman Sachs, Axis Capital, Citi and HDFC Bank are the booking running lead managers to the issue.
Lot size of the IPO is a minimum of six shares for which one will have to spend Rs 12,900. A maximum of 15 lots comprising 90 shares can be applied for by spending Rs 1,93,500.
The Noida-based firm will use the proceeds of share sale to strengthen its payment ecosystem and for new business initiatives and acquisitions.
