Digital payments and financial services firm Paytm has fixed an offer price of Rs 2,150 apiece for its initial share-sale.
Paytm, which offers a range of services from banking, shopping, movie and travel ticketing to gaming, is expected to list on bourses on November 18, according to the final prospectus filed by the company with the Registrar of Companies on Friday.
Also Read: Explained: Why UPI is not at the heart of Paytm's payments business
It had priced its shares in a price band of Rs 2,080-2,150 per share, valuing the company at Rs 1.39 lakh crore at the upper end of the price band.
The success of the IPO is seen as a precursor for more big-ticket public floats to come in the next year.
"It was expected that Paytm would price the deal at the top-end as the company's anchor-allotment was oversubscribed by more than 10-times," said Shifara Samsudeen, Equity Analyst at LightStream Research, who publishes on research platform Smartkarma.
With the Rs 18,300-crore share sale via Initial Public Offering (IPO), the company, formally known as One97 Communications, has become the largest fintech IPO in the Asia Pacific region.
Also Read: Paytm IPO: Why some fund houses invested, while several others stayed away
It is also the second largest fintech IPO of 2021 globally, after Spain-based Allfunds IPO.
Overall, Paytm will be the fourth largest fintech stock debut, globally.
The company’s document shares a preview of the fees paid to legal partners, book running lead managers (BRLMs) and other advisors, for its IPO.
According to the prospectus, Paytm will be paying its BRLMs Rs 323.9 crore, which is about 1.8 per cent of the total issue size of Rs 18,300 crore and amongst the largest ever cumulative BRLM payouts in India.
Paytm had appointed Morgan Stanley, Goldman Sachs, Axis Capital, ICICI Securities, JP Morgan, Citi, and HDFC Bank as its BRLMs for the IPO.
Legal counsels in India and global capital markets, including Shardul Amarchand, Latham & Watkins, Khaitan & Co, and Shearman & Sterling have also acted under various capacities in the IPO.
The Paytm IPO closed with 1.89 times subscription.
A total of 9,14,09,844 Paytm shares were bid for as opposed to the 4,83,89,422 shares available.
Paytm got total bids worth Rs 19,653 crore vs Rs 10,065 crore of the main book.
A total of 9,14,09,844 Paytm shares were bid for as opposed to the 4,83,89,422 shares available.
As per data from the exchanges, Paytm’s QIB portion was oversubscribed by 2.79 times with participation from foreign institutional investors, domestic financial institutions(banks/ financial institutions (FIs)/ insurance companies) and mutual Funds.
Paytm is backed by big investors like Ant Group and SoftBank's Vision Fund and its anchor investors included big names like BlackRock and Canada Pension Plan Investment Board.
"Qualified institutional buyers that have bought into the company know what they are investing in, they will not create panic on day one. They are not looking for one day gains," said Arun Kejriwal, founder of an independent research firm.
Marquee investors are trimming their stakes via the IPO. Ant Group, which had a 28 percent holding in Paytm, is selling shares worth 47.04 billion rupees and will be left with a 23 percent stake. SoftBank's Vision Fund is cutting its stake by 2.5 percentage points to 16 percent with a 16.89 billion rupee share sale.
(With inputs from agencies)
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