Paytm shares traded at the lowest premium amongst IPOs that are currently trading in the grey market.
Paytm operator One 97 Communications is expected to finalised its basis of allotment by November 15, as per the draft papers filed with the Sebi. The biggest ever initial public offering of Rs 18,300 crore by one of the most famous new-age internet companies made a lot of buzz on the Street, but did not receive that good a response from investors.
It was subscribed 1.89 times, receiving bids for 9.14 crore equity shares against IPO size of 4.83 crore equity shares during September 8-10, aided largely by qualified institutional buyers whose reserved portion saw 2.79 times subscription. A part set aside for retail investors was subscribed 1.66 times and that of non-institutional investors saw 24 percent subscription.
The share allotment can be checked online either on the website of BSE or IPO Registrar, by following three easy steps.
On the BSE website:
a) Select Equity and Issue Name (One 97 Communications Limited)
b) Enter Application Number and PAN Number
c) Finally check box (I’m not a robot), and click on search’ to know the application status
Alternatively the allotment status can be checked on the IPO registrar:
a) Select company name ‘One 97 Communications Limited – IPO’
b) Select and accordingly enter PAN Number, or Application Number, or DP/Client ID, or Account No / IFSC
c) Finally click on submit.
The funds will be refunded to unsuccessful investors by November 16, and eligible investors will get shares in their demat accounts by November 17.
The trading in equity shares on the BSE and NSE will commence with effect from November 18.
Paytm shares traded at a price of Rs 2,200 in the grey market, a 2.3 percent or Rs 50 premium over final issue price of Rs 2,150, as per the IPO Watch and IPO Central. It has the lowest grey market premium amongst IPOs that are currently trading in the grey market.
The grey market is an unofficial platform where the trading begins with the announcement of IPO price band and continues till the listing of shares on the bourses.
The offer consisted of a fresh issue of Rs 8,300 crore and an offer for sale of Rs 10,000 crore by selling shareholders including founder Vijay Shekhar Sharma and several investors including Alibaba.com Singapore E-Commerce, Elevation Capital V FII Holdings, SAIF III Mauritius, and SVF Panther (Cayman).
One 97 Communications will utilise net proceeds from its fresh issue for growing and strengthening Paytm ecosystem, and investing in new business initiatives, acquisitions and strategic partnerships, besides general corporate purposes.
One 97 Communications, which launched Paytm in 2009, is India’s leading digital ecosystem for consumers and merchants as it has built the largest payments platform in India based on the number of consumers, number of merchants, number of transactions and revenue as of March 2021.The company offered payment services, commerce and cloud services, and financial services to 33.7 crore registered consumers and over 2.18 crore registered merchants, as of June 2021.
