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India's Paytm prices stock at top of range in US$2.5 billion IPO

India's Paytm prices stock at top of range in US$2.5 billion IPO

FILE PHOTO: The interface of Indian payments app Paytm is seen in front of its logo displayed in this illustration picture taken July 7, 2021. REUTERS/Florence Lo/Illustration

NEW DELHI: India's Paytm has priced its shares at 2,150 rupees (US$28.9) each, the top of its price range, in its 183 billion rupee initial public offering (IPO), a prospectus showed on Friday (Nov 12).

Paytm, a payments company that markets an all-in-one app, had flagged a price range of 2,080-2,150 rupees per share for the deal.

The IPO is the largest ever in India and the success of the deal is seen as a precursor for more big ticket public floats to come in the next year.

The company, formally known as One97 Communications, which had already raised US$1.1 billion from anchor investors, has received US$2.64 billion worth of bids for the remaining 48.4 million shares on offer, or 1.89 times, according to stock exchange data published on Wednesday.

Marquee investors are trimming their stakes via the IPO. Ant Group, which had a 28 per cent holding in Paytm, is selling shares worth 47.04 billion rupees and will be left with a 23 per cent stake.

SoftBank's Vision Fund is cutting its stake by 2.5 percentage points to 16 per cent with a 16.89 billion rupee share sale.

Source: Reuters/zl

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