Paytm, a payments company that markets an all-in-one app, priced its 85.1 million-share issue at Rs 2,150 ($28.9) each. It had fixed a price range of Rs 2,080-2,150 per share for the deal.
The success of the IPO is being seen as a harbinger of more big-ticket deals to come next year.
“It was expected that Paytm would price the deal at the top-end as the company’s anchor-allocation exceeded 10x,” said Shifra Samsudin, equity analyst at Lightstream Research.
The company, formally known as One97 CommunicationsThe stock, which had already raised $1.1 billion from anchor investors, has received bids worth $2.64 billion, or 1.89 times, for the remaining 48.4 million shares, according to stock exchange data published on Wednesday.
Paytm, which offers a wide range of services from banking, shopping, movie and travel ticketing to gaming, is expected to make its debut in the Indian markets on November 18, the company said in its prospectus.
“Paytm’s valuation is expensive but we think there will be some advantage in listing,” said Samsudin.
Paytm is backed by large investors such as Ant Group and SoftBank’s Vision Fund, and anchor investors include big names such as BlackRock and Canada Pension Plan Investment Board.
Arun Kejriwal, founder of an independent research firm, said, “Qualified institutional buyers who have bought into the company, knowing what they are investing in, will not create panic on day one. They are not looking for one day profit. Huh.”
Big investors are cutting their stake through IPO. Ant Group, which held 28% stake in Paytm, is selling shares worth Rs 4,704 crore and will retain 23%. SoftBank’s Vision Fund is reducing its stake by 2.5 percentage points to 16% with a share sale of Rs 1,689 crore.