CPPIB, ADIA, GIC, Temasek pitch in as anchors for Paytm IPO

 CPPIB, ADIA, GIC, Temasek pitch in as anchors for Paytm IPO

A bunch of institutional investors including pension funds and sovereign funds have taken part in the anchor book allotment for the initial public offering (IPO) of One97 Communications Ltd, the parent of digital wallet and e-payment services firm Paytm.

Global public market investment goliath BlackRock led a commitment of nearly $200 million as part of the $1.1-billion (Rs 8,235 crore) anchor allotment. This makes it one of the largest anchor books for an IPO in India.

Among other prominent investors, Canadian pension fund CPPIB put in Rs 938 crore ($112 million), Singapore and Abu Dhabi wealth funds GIC and ADIA put in Rs 533 crore and Rs 56 crore and an investment firm associated with Temasek bought shares worth Rs 56 crore.

Several mutual funds and foreign portfolio investors also participated in the anchor allotment that closed ahead of Diwali due to the closure of trading sessions in the latter half of the week.

The overall issue, including the anchor book, is worth Rs 18,300 crore comprising a fresh issue of shares to garner Rs 8,300 crore and an offer for sale of Rs 10,000 crore. The IPO opens next week.

At the upper end of the price band Paytm would be valued at Rs 1.4 trillion ($18.8 billion). This would make it the 37th most valued company in the country. Previous media reports had suggested the firm was eyeing a valuation of $25-30 billion.

One97 Communications had initially filed for a Rs 16,600 crore ($2.2 billion) initial public offering, nearly a decade after scrapping a proposed IPO in a different avatar when it was a mobile value-added services provider.

It increased the issue size as the offer for sale portion expanded. Elevation Capital (formerly SAIF Partners) an early backer of the firm, SoftBank, Antfin and Alibaba among others are selling shares in the IPO.

Vivek Sinha

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