Paytm IPO: What GMP signals about the listing of India's biggest public issue

The grey market premium (GMP) of digital payments and financial services firm Paytm is trading in a range of Rs 125 to Rs 135 per share. The initial public offering (IPO) has a price band of Rs 2,080 to Rs 2,150 per equity share.At the current GMP, the firm is likely to be listed at Rs 2,285 per share.

The share sale will open for subscription on November 8 and close on November 10.

Lot size of the IPO is a minimum of six shares for which one will have to spend Rs 12,900.

A maximum of 15 lots comprising 90 shares can be applied for by spending Rs 1,93,500.

The Vijay Shekhar Sharma-led firm has raised Rs 8,235 crore from anchor investors on November 3. Blackrock, CPPIB, Birla MF, GIC and other blue-chip funds participated in the anchor fund-raising round leading to 10 times oversubscription of shares.

The Paytm IPO, if successful, will be the country's largest share sale with the firm aiming to raise Rs 18,300 crore.

The IPO will surpass Coal India (Rs 15,475-crore IPO) and Reliance Power (Rs 11,700 crore IPO) in terms of issue size.

The company has raised its issue size from Rs 16,600 crore ($2.2 billion).

The IPO comprises a fresh issue of equity shares of the face value of Rs 1 each, aggregating to Rs 8,300 crore and the offer for sale by the existing shareholders, aggregating to Rs 10,000 crore.

The Noida-based firm will use the proceeds of share sale to strengthen its payment ecosystem and for new business initiatives and acquisitions.

JPMorgan Chase, Morgan Stanley, ICICI Securities, Goldman Sachs, Axis Capital, Citi and HDFC Bank are the booking running lead managers to the issue.

On October 22, Paytm had received market regulator Sebi's nod for the share sale.

Large investors such as Jack Ma's Ant Group Co and Masayoshi Son's SoftBank Group Corp will sell their stake through the IPO.

Through the offer for sale (OFS), One97 Communications Managing Director and CEO Vijay Shekhar Sharma will sell shares worth up to  Rs 402.6 crore while Antfin (Netherlands) Holdings will sell shares to the tune of  Rs 4,704 crore.