India’s Paytm’s IPO subscribed 48% as fintech firm heads into last issue day

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BENGALURU, Nov 9 (Businesshala) – Indian fintech firm Paytm’s initial public offering (IPO) of up to Rs 183 billion ($2.47 billion) was subscribed 48% on the second day of the receiving period for 23.5 million shares, the stock exchange said. had gone. The data is shown on Tuesday.

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A source told Businesshala that earlier in the day, the Canada Pension Plan Investment Board had ordered about 6 million shares in the main book. At the upper end of the price band, this translates to around Rs 12.8 billion.

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Paytm has put up 48.3 million shares for sale, in what is expected to be India’s biggest stock market listing, surpassing Coal India’s Rs 150 billion IPO more than a decade ago.

Ant Group-backed Paytm last week said it has allotted shares worth Rs 82.35 billion to over 100 institutional investors, including the Singapore government, BlackRock Global Funds, Canada Pension Plan Investment Board and Abu Dhabi Investment Authority.

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Launched a decade ago as a platform for mobile recharging, Paytm grew rapidly after ride-hailing firm Uber (UBER.N) listed it as an instant payment option. Its use increased in 2016 when a ban on high-denomination currency banknotes in India promoted digital payments.

Paytm’s offering opened to retail investors on November 8, the day Indian Prime Minister Narendra Modi announced currency ban or demonetisation five years ago.

Founder and CEO Vijay Shekhar Sharma then lauded Modi’s move, calling it “the biggest, boldest and most ambitious surgical strike by any government in the world”.

A year before that, Sharma, the son of a schoolteacher from a small town in India’s most populous northern Uttar Pradesh state, had won for Paytm with the backing of Chinese billionaire Jack Ma’s Ant Financial.

Over the years, Sharma, who has frequently praised Ma and posted photos with him, also won other big investors, including SoftBank and Berkshire Hathaway, for his firm.

According to Forbes, the sale of the stake has helped him achieve a net worth of $2.4 billion.

As Paytm opened bids on Monday, Sharma visited an ancient Hindu temple in southern India and posted a picture Twitter.

Sharma said, “I have come here to seek God’s blessings for everyone in the Paytm family.”

Paytm is planning to raise around $2.2 billion through an IPO at a valuation of $20 billion.

The bids close on Wednesday and Paytm will be listed on the Indian stock exchanges on November 18.

Top investor Ant Financial, which owns 27.9% of Paytm, plans to sell shares worth Rs 47.04 billion.

($1 = 74.1900 Indian Rupee)

Reporting by Sankalp Phartyal in New Delhi and Nupur Anand in Mumbai, additional reporting by Vishwadha Chander in Bengaluru; Editing by Arun Koyyur


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