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Paytm raises Rs.8,235 crore from anchor investors

09 February 20234 mins read by Angel One
Paytm raises Rs.8,235 crore from anchor investors
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Paytm’s parent company One97 Communications, has headed over to anchor investors and raised Rs. 8,235 crore. Many of the top investors and wealth funds participated in the anchor rounds. The round was oversubscribed ten times. Here is a brief rundown of the story.

Key highlights from Anchor Investor rounds for Paytm

  • Top investors and wealth funds participated in the anchor rounds. Prominent names of participants are:
    • Abu Dhabi Investment Authority
    • Alkeon Capital
    • BlackRock
    • CPPIB (Canada Pension Plan Investment Board) from Canada
    • GIC Housing Finance from Singapore
    • Fidelity
    • Standard Life Aberdeen
    • UBS
    • Janus Henderson (a US-based hedge fund)
    • Aditya Birla Mutual Fund
  • Around 122 funds were put in bids this round which was oversubscribed 10 times.
  • BlackRock, CPPIB and GIC are the three funds that have invested heavily in One97 Communications.  They have invested more than Rs. 2,516 crores cumulatively.
  • Paytm has raised around 45% of the total capital it sought to raise with the close of the anchor round.

More Details Regarding Paytm’s IPO

  • Paytm has announced the largest IPO in Indian corporate history. The size of the IPO is Rs. 18,300 crores.
  • With 45% of this capital now accounted for, it remains to be seen how much will be raised in this IPO.
  • Paytm has fixed its price range of the IPO at Rs. 2,080 to Rs. 2,150 with a valuation of $19.5-20 billion.

Paytm’s financials

Considering the success of the Zomato IPO, Paytm, too, is expected to have a stellar experience on Dalal Street. Its financials are pretty solid. Take a look!

  • This company’s present operating revenue is 890 crores which hasjumped over 61% from the Rs. 551 crores of the June Quarter.
  • Losses totalled Rs 382 crore.
  • Presently, payment and financial services drive Paytm’s revenue. It contributes 77% of the total revenue.

Bottom Line

With such a strong performance in the anchor round, experts expect Paytm to do well in the upcoming IPO. It will also give the necessary impetus to other companies looking to go public.

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Frequently Asked Investors

  1. Who are anchor investors?

Ans. Ahead of an IPO, an IPO-bound company allocates shares to large investors at a fixed price. They are known as anchor investors, and the round of investment is known as anchor round.

  1. What is the purpose of Paytm’s IPO?

Ans. Paytm will use the money raised through IPO for new business initiatives, strategic partnerships, and acquisitions.

  1. What is likely to be the market capitalization of the company post IPO?

Ans. Axis Capitals stated the market cap of Paytm is likely to be Rs. 1,35,111 to 1,39,379 crores.


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