Shares in India’s Paytm indicated 9% lower in pre-market trade on debut

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FILE PHOTO: The interface of Indian payments app Paytm is seen in front of the logo displayed in this image taken on July 7, 2021. Businesshala/Florence Low/Illustrations/File photo
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NEW DELHI (Businesshala) – Shares in Paytm were pointed 9.3% below their IPO price in pre-market trading – a level that would cost the Ant Group-backed digital payments firm about Rs 1.26 trillion ($17 billion) after India’s will give the greatest value. – IPO ever.

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They were indicated at an offer price of Rs 1,950 versus Rs 2,150.

Paytm, which also counts SoftBank among its backers, raised $2.5 billion in its initial public offering, of which $1.1 billion was from institutional investors. Last week it received $2.64 billion worth of bids for the remaining shares, or 1.89 times.

The company, headquartered on the outskirts of India’s capital New Delhi, priced its 85.1 million-share issue at the top of the range at Rs 2,150.

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)

Reporting by Sankalp Fartiyal and Vishwadha Chander; Editing by Jacqueline Wong and Edwina Gibbs

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