Paytm opens Rs 18,300-crore initial public offering for subscription
The firm’s IPO is currently the largest in the Indian capital market.
Fintech firm Paytm on Monday opened its Rs 18,300-crore initial public offering, or IPO, for subscription, Moneycontrol reported. The company’s shares are priced between Rs 2,080 and Rs 2,150 per unit.
An investor can bid for a minimum of one lot of six shares. Till 1 pm on Monday, 10% of Paytm’s IPO was subscribed to by people.
Paytm’s Rs 18,300-crore initial public offering is currently the largest in the Indian capital market, Deccan Herald reported. Paytm’s issue size is followed by Coal India that was floated for Rs 15,475 crore in November 2020, and Reliance Power that was priced at Rs 11,700 crore in February 2008.
An initial public offering is a process in which private companies offer shares to the public through issuance of new stocks. At the end of the initial public offering process, the company gets listed on the stock exchange and is allowed to raise capital from public investors.
Paytm on Monday said it will utilise income generated from the initial public offering to acquire customers and merchants and provide them with better access to financial services, NDTV reported. The fintech firm also plans to invest in new businesses and partnerships.
Paytm had incurred losses of Rs 1,701 crore in the financial year 2021, Financial Express reported. The company covered up the losses by cutting marketing and advertising expenses.
“Notably, marketing and promotional expenses decreased from Rs 3,410 crore in FY19 to Rs 532 crore in FY21, which resulted in its net loss to reduce from Rs 4,200 crore in FY19 to Rs 1,700 crore in FY21,” said brokerage firm Reliance Securities, according to Moneycontrol.
Paytm’s initial public offering will close for subscription on Wednesday. The shares will likely be allotted on November 15, and they will be listed on the market on November 18.
So far in 2021, forty-six companies have floated initial public offerings, raising Rs 80,102 crore, according to Business Standard. Market experts said that several firms might raise up to Rs 1 lakh crore in the capital market by the end of financial year 2021.