With the shares of one of the country’s leading digital payments platform – Paytm – all set to be listed on the bourses on November 18, the company could be on the cusp of becoming one of the most valued entities.
Its initial public offer (IPO), which concluded on November 10, 2021, was worth Rs 18,300 crore, the country’s biggest till now and next only to Coal India’s public offer. It was subscribed 1.89 times by the end of its bidding process.
Paytm’s IPO consists of a fresh issue of Rs 8,300 crore and an offer for sale (OFS) by existing shareholders worth Rs 10,000 crore.
The company sold shares in the price band of Rs 2,080- Rs 2,150 per share and retail investors had the option to bid for a minimum of one lot of six shares up to a maximum of 15 lots. At the upper price band, one lot of Paytm shares was priced at Rs 12,900.
Investors such as Japan’s SoftBank, China’s Ant Group and Alibaba, and Elevation Capital were among the top entities who diluted their stakes in the IPO.
While market analysts have been speculating over the price at which Paytm’s shares could be listed, the fact cannot be denied that its founder Vijay Shekhar Sharma, rose from humble beginnings in Aligarh in Uttar Pradesh and is now all set to become the owner of one of the country’s most valued companies.
Let’s have a look at how Paytm’s journey began.
A school teacher’s son, Vijay Shekhar Sharma started Paytm as a cell phone and DTH recharging facility in 2010. Its parent company One97 Communications had been incorporated in the year 2000.
It rose swiftly soon, after cab hailing company Uber took its services as a fast cost possibility.
However the company hit pay dirt in November 2016 when the government announced demonetisation and encouraged digital payment systems.
This development saw Paytm’s subscribers rising multiple times, as it seemed to have become everybody’s preferred platform for digital payments.
Paytm along with One97 Communications is the owner of Paytm Payments Bank which has millions of account holders under its fold.