Zomato set the way for some of India’s first gen startups to go public, and other players have gone down the same path with an aim to find similar success. One such player is Paytm, which has already raised $1.1 billion (₹8, 235 crores) from anchor investors as part of its IPO.
The round was oversubscribed 10 times by 74 investors, helping Paytm secure 45% of its ₹18, 300 crores ($2.4 billion) IPO. The round included participation from sovereign wealth funds and financial investors such as Singapore’s GIC, Canada’s CPPIB, BlackRock, Alkeon Capital, Abu Dhabi Investment Authority, as well as Blackrock, CPPIB, Birla MF, City of New York, Texas Teachers Retirement, NPS Japan, University of Texas, NTUC Pension out of Singapore and the University of Cambridge.
BlackRock, CPPIB, and GIC are among the top investors in Paytm’s anchor round, and according to Paytm’s filing with the BSE, have together invested more than ₹2,516 crores – Blackrock invested ₹1,045 crores, Canada Pension Plan Investment Board ₹938 crores and GIC put in ₹533 crores.
The highly-anticipated IPO of Paytm, which happens to be the second-most valued startup in India (last valued at $16 billion), is set to happen next week, and the issue will be open from November 8-10. This offer, whose issue size was increased from ₹16, 600 crores to ₹18, 300 crores, will be the biggest IPO in India to date. The price band for the IPO has been kept in the range of ₹2,080- Rs 2,150.
The IPO comprises the issuance of fresh equity shares worth ₹8,300 crore and offer for sale (OFS) by existing shareholders to the tune of ₹10,000 crore. The company aims to list at a valuation of $19.3-19.9 billion. This is ambitious, no doubt, but as Zomato has shown us, nothing is impossible, and the sky is the limit.
One97 Communications Managing Director and CEO Vijay Shekhar Sharma will sell shares worth up to $53.94 million (₹402.65 crores) while Antfin (Netherlands) Holdings will sell shares to the tune of $643 million (₹4,704.43 crores).
