Rs 12,900 Is Minimum Investment For Paytm IPO: 7 Fact You Should Know Right Away
The most prompted IPO is finally here. In the coming week, One97 Communications-owned Paytm will launch its initial public offering for subscription.
Largest-ever Public Issue
This is the largest-ever public issue in the history of Indian capital markets.
Prior to this, state-run coal mining company Coal India had the biggest IPO of more than Rs 15,000 crore in October 2010.
Paytm IPO Facts
Here are the facts one should before subscribing.
- The IPO application window will open for investors from November 8 and will close on November 10.
- Coming to the price band, it is fixed at Rs 2,080 to Rs 2,150 per equity share.
- Through its public issue, Paytm is planning to mobilise Rs 18,300 crore.
- It comprises a fresh issue of Rs 8,300 crore and an offer for sale of Rs 10,000 crore by selling shareholders including founder and investors.
- Prior to this, the payment services provider has already garnered Rs 8,235 crore from anchor investors on November 3, including Blackrock, CPPIB, Birla MF, GIC among other blue-chip investors.
- The generated funds is going to be utilised for growing and strengthening Paytm ecosystem, including through acquisition and retention of consumers and merchants and providing them with greater access to technology and financial services (Rs 4,300 crore).
- Apart from this, the fresh issue funds will also be used for new business initiatives, acquisitions and strategic partnerships (Rs 2,000 crore), besides general corporate purposes.
- Coming to lot size, the minimum bid lot size has been fixed as 6 equity shares and in multiples of 6 shares thereafter. In the case of retail investors, they can invest a minimum of Rs 12,900 for a single lot and their maximum investment would be Rs 1,93,500 for 15 lots.
So far, Paytm is the largest payments platform in India with a gross merchandise value (GMV) of Rs 4,03,300 crore in FY21 against Rs 3,03,200 crore in FY20.
The payments provider has covered mobile payments transaction volume market share of approximately 40 percent, and wallet payments transaction market share of 65-70 percent.
Its gross merchandise value increased to Rs 1,46,900 crore in Q1FY22 from Rs 69,700 crore in Q1FY21.