Paytm IPO will open on 8 November, price band of rs 2080 to 2150 | Paytm’s IPO will open on November 8, the price range may be Rs 2080-2150 per share


Photo:PAYTM

Paytm IPO will open on 8 November, price band of rs 2080 to 2150

New Delhi. The IPO of One97 Communications Limited, which operates Paytm, will open on November 8 and is likely to close on November 10. The company can fix a price range between Rs 2080 and Rs 2150 per share for its IPO at a valuation of $ 20 billion.

Paytm has increased the size of its initial public offering (IPO) from Rs 16,600 crore to Rs 18,300 crore. According to sources, the company’s largest shareholder Alibaba Group firm Ant Financial and other existing investors including SoftBank have decided to sell their majority stake in Paytm. Earlier, the company was planning to raise a total of Rs 16,600 crore through IPO, which included fresh issue of Rs 8,300 crore and Offer for Sale (OFS) of Rs 8,300 crore.

The decision to sell more stake by existing shareholders will increase the size of the OFS by Rs 1,700 crore to Rs 10,000 crore. About half of the sale offer is by Ant Financial and the rest by Alibaba, Elevation Capital, SoftBank and other existing shareholders, a source said. Paytm did not mention the stake sale by SoftBank in its IPO document. Ant Financial has to sell at least 5 per cent stake to bring down its stake below 25 per cent as per regulatory requirements. It currently holds 29.6 percent stake in Paytm.

A source said that Paytm can fix the price of its share at Rs 2080-2150. The company wants its valuation to be $20 billion, so the upper limit is more likely to be fixed.

The Securities and Exchange Board of India (SEBI) last week approved the IPO of the Noida-headquartered digital payments company. Led by Founder and CEO Vijay Shekhar Sharma, the 11-year-old Paytm is expanding into new categories like lending, gaming, wealth management, financial services and digital commerce besides digital payments. Paytm’s cumulative revenue declined 11 per cent to Rs 3187 crore in the financial year 2020-21, but the company managed to reduce its losses by 42 per cent to Rs 1701 crore during the period.

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