The Noida-based Paytm, meaning pay through mobile, is an Indian multinational technology company specializing in digital payment systems, e-commerce and finance. It is owned by One97 Communications Limited with Vijay Shekhar Sharma being its founder. It was licensed by the Reserve Bank of India in 2015 to operate as a payments bank and was launched in November 2017. Paytm is one of the top digital players in India’s digital ecosystem for consumers and merchants. Its merchant base grew to 21.1 million by March 31, 2021, from 11.2 million in 2019.
How does the Initial public offering work?
Initial public offerings (IPO’s) are new stock offerings in which company shares are sold to the public. To hold an IPO, companies must meet requirements from exchanges and the Securities and Exchange Commission (SEC). In an IPO, companies are allowed to obtain funding by issuing their shares through the primary market.
Paytm’s IPO:
- Paytm’s IPO is all set to be launched on November 8, 2021, and it is touted as the biggest deal ever in India with an issue size worth Rs 18,300 crore
- Paytm’s public offering contains a fresh offering of equity shares worth up to Rs. 8,300 crores and an offer for sale of equity shares worth up to Rs. 10,000 crores from existing shareholders, making it India’s largest-ever IPO
- Paytm IPO price band is Rs. 2080 to Rs. 2150 per share and lot size is a minimum of 6 shares and its multiple thereof
- A retail investor can invest a minimum of Rs 12,900 for a single lot, while their maximum investment would be Rs 1,93,500 for 15 lots.
- The Paytm IPO shares are proposed to be listed on NSE and BSE
- Paytm is registered by Link Intime India Pvt. Ltd
How to apply for the Paytm IPO?
With Zerodha One you can apply for the Paytm IPO via any supported UPI app by following two steps:
Enter your bid on Console
Accept UPI mandate on your phone
The bid amount will be blocked in your bank account once the mandate has been accepted. On purchase of Paytm’s IPO, you can also check the allotment status on the NSE website.
Paytm plans to use the proceeds from the IPO to acquire consumers and merchants and provide them with greater access to technology and financial services. Besides investing in new business ventures, partnerships and acquisitions, the remaining funds will be used for other corporate activities.
