Paytm IPO subscription opens today: Check price band, GMP, key details here

New Delhi: Paytm, an Indian multinational technology company that specialises in digital payment systems, e-commerce, and finance opened its initial public offer (IPO) for subscription on Monday. Last week, five other companies have successfully completed the IPOs. The three-day IPO will be closing on November 10. Paytm’s IPO is considered to be the highest in India at $2.46 billion (Rs 18,300 crore).

Here are some details about Pytm’s IPO you need to know:

The Bidding

The IPO has started from today and those who are interested in bidding have to practice so in the lot of six and its multiples. To get a single lot of the offer promoted by One97 Communication, the parent company of Paytm, the minimum investment will account to Rs 12,480.

Price Band

The IPO will be available at a price band of Rs 2,080-Rs 2,150. Besides, the allotment will be finalised by November 15 whereas the listing is expected on November 18.

Size of the issue

IPO beholds fresh issuance of equity shared priced Rs 8,300 crore and Rs 10,000 crore from an offer for sale (OFS) by existing shareholders. Notably, the offer will be considered to be the biggest after Coal India’s IPO in 2010 where the company has acquired Rs 15, 200 crores.

Reportedly, Paytm on Wednesday raised Rs 8,235 crore from anchor investors. It has signed up BlackRock, CPPIB collaboratively along with the sovereign wealth funds of Singapore and Abu Dhabi as anchor investors.

Who will be diluting their shares in Paytm?

With the opening of IPO, top investor Ant Financial plans to sell its 27.% stake in Paytm amounting to $643 million. Besides, Vijay Shekhar Sharma Paytm’s managing director and CEO will also deposit shares worth up to $53.94 million ( ₹402.65 crore).

What is Paytm?

Launched in 2010, Paytm an online platform was mainly used for mobile recharging. In 2016, the company grew owing to demonetisation in India. Ever since, the company branched out into services like insurance and gold sale, movie and flight ticketing, bank deposits, and bank remittances. The company undergoes nearly $800 billion of payments annually to 22 million merchants. Besides, it has 337 million customers.