Paytm’s parent company One97 Communications has filed a draft before SEBI for an IPO worth Rs 16,600 crore. In this, fresh share issue of 8300 crores and 8300 crores are under offer for sale.
Paytm IPO: Payment company Paytm has filed a draft letter for IPO of 16600 crores before SEBI. In this, Rs 8,300 crore has to be raised through new shares and Rs 8,300 crore through offer for sale. According to the document, the offer for sale includes an offer for sale of shares of the company’s founder Vijay Shekhar Sharma, Alibaba Group and its subsidiaries Ant Financial, Elevation Capital, SVF Partners, BH International Holdings etc.
In its draft, Paytm said that it will work to strengthen the payment ecosystem through the IPO. In Paytm’s IPO, 75% is reserved for Qualified Institutional Buyers (QIBs). In this, up to 60 percent can be kept safe for anchor investors. 15% of the net offer can be allocated to non-institutional investors. 10% can be reserved for retail investors.
Its share price is skyrocketing in the gray market
After the start of the IPO discussion, there is a tremendous rise in the shares of Paytm in the gray market. At present it is at the level of 2500-2600 rupees. By May 2021, this price was around Rs 950-1000. The lock-in period for buying shares in the gray market prior to the IPO will be 1 year.
All the big brokerages associated with this IPO
Morgan Stanley India, Goldman Sachs Securities India and Exic Capital have been appointed as Joint Global Coordinators BRLM (Book Running Lead Manager) for Paytm IPO. ICICI Securities, JP Morgan India, Citigroup Global Markets India and HDFC Bank have been appointed as Book Running Lead Managers for the share issue. Link Intime India has been appointed as Registrar.
Big change in board before IPO
Let us tell you that in order to avoid any kind of problem in the IPO, the company had made a big change in its management last week. The company has appointed Americans and Indians by replacing all Chinese citizens on the board. There is no change in the existing share holdings. According to regulatory documents, Alipay representative Jing Jiandong, Ant Financial’s Guoming Cheng, and Alibaba representatives Michael Yuen Zhen Yao (US citizen) and Ting Hong Kenny Ho are no longer directors of the company.
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