India's Paytm prices stock at top of range in $2.5 bln IPO

India's Paytm prices stock at top of range in $2.5 bln IPO

By Reuters

  • 12 Nov 2021
Credit: VCCircle

India's Paytm has priced its shares at 2,150 rupees ($28.9) each, the top of its price range, in its 183 billion rupee initial public offering (IPO), a prospectus showed on Friday.

Paytm, a payments company that markets an all-in-one app, had flagged a price range of 2,080-2,150 rupees per share for the deal.

The IPO is the largest ever in India and the success of the deal is seen as a precursor for more big ticket public floats to come in the next year.

The company, formally known as One97 Communications, which had already raised $1.1 billion from anchor investors, has received $2.64 billion worth of bids for the remaining 48.4 million shares on offer, or 1.89 times, according to stock exchange data published on Wednesday.

Marquee investors are trimming their stakes via the IPO. Ant Group, which had a 28% holding in Paytm, is selling shares worth 47.04 billion rupees and will be left with a 23% stake.

SoftBank's Vision Fund is cutting its stake by 2.5 percentage points to 16% with a 16.89 billion rupee share sale.