One 97 Communications Limited ("Company"), the holding company of Paytm, a digital platform for consumers and merchants, received bids of 88,23,924 shares against the offered 4,83,89,422 equity shares, as per the 5:00 pm data available on the bourses.
Retail portion was the most subscribed with 78%, which garnered Rs 1,479 crore, while the reserved portion of non-institutional investors was subscribed 2%, and qualified institutional buyers portion was subscribed 6%. Overall, the issue was subscribed 18%.
The offering comprehends a fresh issue of primary equity shares with a face value of Re 1 each worth Rs 8,300 crore and an offer for sale (OFS) by existing shareholders worth Rs 10,000 crore.
The Company had raised Rs. 8,235 crores from a strong set of anchor Investors. The Company informed the bourses that it had allocated 3,83,02,326 equity shares at Rs. 2,150/- per share on Wednesday, November 3rd, 2021.
Brokerage Houses like Reliance Securities, Arihant Capital Market, Canara Bank Securities etc. have given recommendations of "Subscribe" to the issue for long term perspective.
According to brokerage houses, Paytm has strong 33% CAGR in GMV, over FY19 – FY21, despite the pandemic, it vindicates Paytm’s leadership and brand value. It is the largest payments platform in India, with a GMV of ~ 4 lakh crore in FY21. Overall, across the India internet sectors, most sectors will be reaching high maturity by FY26 in GMV terms, accounting for a significant share of the overall consumption in that category; thus truly making India a digital economy.
Digital payments markets have been growing steadily over time though India continues to be a cash driven economy. In FY21, it was valued at ~US$20 trillion with 43 billion transactions during the year. Mobile payments, which includes mobile wallet and UPI. Unique mobile payment users to increase from 252 million in FY 2021 to 650-700 million in FY 2026.
Morgan Stanley India Company Private Limited, Goldman Sachs (India) Securities Private Limited, Axis Capital Limited, ICICI Securities Limited, JP Morgan India Private Limited, Citigroup Global Markets India Private Limited, and HDFC Bank Limited are the Book Running Lead Managers (“BRLM”) to the offer.
Company Information
Paytm is India’s leading digital ecosystem for consumers and merchants Paytm offers payment services, commerce and cloud services, and financial services to 337 million registered consumers and over 21.8 million registered merchants, as of June 30, 2021.According to a RedSeer report, Paytm is the largest payments platform in India based on the number of consumers, number of merchants, number of transactions, and revenue.
Proceeds of the issue would go towards growing and strengthening Paytm’s ecosystem, including through acquisition of consumers and merchants and providing them with greater access to technology and financial services.
Paytm’s consumer and merchant ecosystem enables commerce, and provides access to financial services, by leveraging technology to improve the lives of consumers and helps merchants grow their businesses.
The company offers consumers a wide selection of payment options on the Paytm app, which include, Paytm Payment Instruments, which allow them to use digital wallets, sub-wallets, bank accounts, buy-now-pay-later and wealth management accounts and major third-party instruments, such as debit and credit cards and net banking.
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