The initial public offering of digital payments firm Paytm will open for subscription on November 8 in the price band of Rs 2,080 to Rs 2,150 apiece and close on November 10, according to sources.
The company has filed papers with markets regulator Sebi which will be updated with price band, individual investor stake sale and other details later.
The company is planning to get listed on November 18, the sources added.
Paytm has decided to increase its IPO size to Rs 18,300 crore from Rs 16,600 crore earlier, with the company’s biggest shareholder Alibaba group firm Ant Financial and existing investors, including Softbank, deciding to dilute more stake in the firm.
The offer-for-sale will now go up by Rs 1,700 crore to Rs 10,000 crore.
“Roughly half of the offer for sale is by Ant Financial and the remaining by Alibaba, Elevation Capital, Softbank and other existing shareholders,” one of the sources said.
Softbank was not part of investors selling stake in the disclosure made by the company in its IPO draft paper.
Swiss Re stake
Paytm on Wednesday said global reinsurer Swiss Re will buy a 23 per cent stake in its arm Paytm Insurtech Pvt Ltd for Rs 920 crore.
Swiss Re will invest by way of equity shares and compulsorily convertible preference shares an amount of Rs 920 crore of which Rs 397 crore will be invested upfront. The remaining will be made in tranches subject to the fulfilment of certain milestones.
According to the company, India’s insurance market presents a significant opportunity, given the its under-penetration compared to the global average.
It added that the gross written premium for non-life insurance is expected to increase to $ 50-60 billion by 2025-26 from $27 billion in 2020-21 to $ 50- 60 billion.
Amid such a potential, Paytm Insuretech plans to leverage Paytm’s customer base and merchant ecosystem to develop innovative insurance products .
“We are excited to partner with Swiss Re for our insurance foray as a key strategic investor. It is an important milestone in our financial services journey of taking general insurance products to the masses. We look forward to gaining from Swiss Re’s global insurance capabilities and building innovative products to tap into the Indian market,’’ Vijay Shekhar Sharma, chairman, MD & CEO One 97 Communications, the parent of Paytm, said.
IPO price
One97 Communications will announce the price band of its much awaited IPO toon Thursday. There are unconfirmed reports that the offering may come in the band of Rs 2080-2150 per share and the IPO may open for subscription on November 8. The company has also reportedly increased the size of the float to Rs 18,300 crore from Rs 16,600 crore.
