NEW DELHI (Businesshala) – Indian digital payments company Paytm is set to make its stock market debut on Thursday after its $2.5 billion initial public offering (IPO), India’s biggest, was oversubscribed last week.
Paytm, which counts China’s Ant Group and SoftBank among its backers, raised $1.1 billion from institutional investors and received bids worth $2.64 billion, or 1.89 times, for the remaining shares on offer last week.
The company, headquartered on the outskirts of India’s capital New Delhi, has priced its 85.1 million-share issue at the top of a range of Rs 2,150 ($28.92) each. It had flagged a price range of Rs 2,080-2,150 per share for the deal.
Some market analysts said they expect the stock to rally despite Paytm’s high valuations.
Engineering graduate Vijay Shekhar Sharma founded Paytm in 2010 as a platform for mobile recharge. The company grew rapidly after ride-hailing firm Uber listed it as an instant payment option in India, and its use increased in late 2016 when New Delhi’s shock ban on high-denomination currency notes allowed digital payments to take off. promoted.
According to Forbes, the success of Paytm has made Sharma, the son of a school teacher, a billionaire with a net worth of $2.4 billion. Its IPO has created hundreds of new millionaires in a country where per capita income is less than $2,000.
($1 = 74.3550 Indian Rupee)