As Paytm IPO kicks off, founder-CEO Vijay Shekhar Sharma visits Tirupati to seek blessings

As the country's largest-ever Initial Public Offering (IPO), Paytm's Rs. 18,300-crore share sale, began for subscription on Monday, November 8, Payment's founder and CEO Vijay Shekhar Sharma visited Tirupati to seek blessings. During his visit, Paytm CEO met Tirumala Tirupati Devasthanams' Executive Officer, Jawahar Reddy. Sharma Shared a post on micro-blogging site Twitter and said, "Just met Sh. Jawahar Reddy Executive Officer, Tirumala Tirupati Devasthanams (#TTD) in Tirupati as I have come here to seek blessing of God for all of @Paytm family."

Vijay Shekhar Sharma grooves after SEBI approves Paytm IPO

This is not the first time when Shekhar celebrated the success of Paytm in IPO. Last month, when the Securities and Exchange Board of India (SEBI), India's market regulator, approved Paytm's Rs 16,600 crore initial public offering (IPO), Paytm's CEO Vijay Shekhar Sharma was reportedly seen dancing his heart out at the company's premises to commemorate the event. Harsh Goenka, chairman of RPG Group, welcomed SEBI's clearance with a video of Paytm's Sharma dancing to a popular Bollywood song, 'Apni to jaisi taise.' He had tweeted, "Scenes at Paytm office after SEBI approves one of India’s largest IPOs."

Paytm IPO raises Rs. 8,300 crore from anchor investors

Retail buyers can bid for a minimum of one lot of six shares up to a maximum of 15 lots. The company is offering shares in the price range of Rs. 2,080-2,150 per share. One batch of Paytm shares will cost Rs.12,900 at the higher price band. Paytm's IPO comprises Rs. 8,300 crore fresh issue and an Rs.10,000 crore offer for sale (OFS) by existing shareholders. Investors such as Japan's SoftBank, China's Ant Group and Alibaba, as well as Elevation Capital, are among the top investors diluting their interests in the IPO, in addition to Paytm's managing director and CEO Vijay Shekhar Sharma.

Paytm plans to use the revenues from the IPO to fund a variety of initiatives, including "acquiring consumers and merchants and providing them with increased access to technology and financial services." The remainder of the funds will be used for other corporate initiatives, such as new business ventures, partnerships, and acquisitions. More than 100 institutional investors, including the Singapore government, received shares worth Rs 8,235 crore from Paytm ahead of the country's largest stock market debut. 

According to a regulatory statement dated November 3, Paytm drew the interest of 122 institutional investors, who purchased more than 38.3 million shares for $2.150 each. Among the investors were BlackRock Global Funds, Canada Pension Plan Investment Board, and Abu Dhabi Investment Authority.

Mobile payment firm kicks off India's biggest IPO

Paytm, which began as a platform for mobile recharging a decade ago, surged swiftly after Uber included it as a quick payment option. When India banned high-value currency banknotes in 2016, it promoted digital payments even more. On the back of record highs in the Indian stock market, which has outperformed Asian peers so far this year, several companies, including Paytm, have accessed capital markets in a fund-raising frenzy this year. 

According to Refinitiv data, 157 firms in India, including TPG-backed Nykaa, Oyo Hotels and Rooms, and online insurance aggregator Policybazaar, have raised $17.22 billion through initial public offerings this year, compared to $8.54 billion raised by 49 companies in the same period last year. Paytm's IPO is expected to be the largest in Indian corporate history, smashing the previous record of Rs 15,000 crore set by Coal India Ltd more than a decade ago.

(Image: @vijayshekhar/Twitter/Shutterstock)