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IPO: Paytm raises Rs 8,235 crore from anchor investors
Digital payments and financial services firm Paytm has raised Rs 8,235 crore from anchor investors, securing 45 percent of its Rs 18,300 crore initial public offering.
The round was oversubscribed 10 times by 74 investors including Blackrock, CPPIB, Birla MF, GIC and other blue-chip funds among other. Blackrock invested Rs 1,045 crore, Canada Pension Plan Investment Board Rs 938 crore and GIC Rs 533 crore.
The round saw participation from pension funds, superannuation funds as well as sovereign wealth funds like Government of Singapore, CPPIB, ADIA, APG, City of New York, Texas Teachers Retirement, NPS Japan, University of Texas, NTUC Pension out of Singapore, and the University of Cambridge.
The largest dedicated emerging market investors like Standard Life Aberdeen, UBS and RWC have also invested. With this, Paytm has already secured 45 percent of its Rs 18,300 crore initial public offer (IPO).
Paytm’s anchor round’s size alone can be termed as the eighth largest private company IPO in India. One97 Communications, which operates under the Paytm brand name, has announced the country’s biggest initial public offer, opening on November 8, in the price band of Rs 2,080-2,150 per share, implying a valuation of around Rs 1.48 lakh crore.
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The Rs 18,300 crore-offer, if successful, will be the biggest in the country after Coal India’s IPO back in 2010 wherein the state-owned company had garnered Rs 15,200 crore. The public offer is expected to take the company’s valuation to $20 billion. Paytm is currently India’s second most-valuable internet company, last valued at $16 billion when it raised a billion dollars in November 2019 led by T Rowe Price, Discovery Capital and D1 Capital.