After nod to Paytm IPO, grey market feels a bonus issue is on the cards!
After the shareholders’ nod to fund raising via a primary issue and for stock split, bonus issue is the next on the cards at fintech giant Paytm. Dealers in the grey market, or the unofficial market for trading in unlisted shares, said the company might issue bonus shares in the 1:10 ratio.
“Just like Zomato, Paytm is also likely to announce a bonus issue to dilute liquidity,” said Dinesh Gupta, co-founder of UnlistedZone. “This will ensure more supply and lower ticket size for the IPO.”
Paytm shareholders approved a resolution to raise Rs 12,000 crore through the issuance of fresh shares through an initial public offering (IPO). Existing investors would offload shares worth Rs 4,600 crore through the issue.
This makes the public listing of India’s second most valued startup all but official. The Noida-based company is likely to file its IPO prospectus in the coming weeks and make a Dalal Street debut as early as November this year.
Paytm parent One97 Communications aims to raise around Rs 2,000 crore ahead of the IPO by issuing shares to institutional investors.
Unlisted shares of Paytm have more than doubled in the last couple of months. The adjusted stock price post share split has shot up to Rs 2,450-2,500 from Rs 900-950 in May 2021.
At the extraordinary general meeting (EGM) this past week, shareholders also gave an approval to declassify founder and chief executive Vijay Shekhar Sharma as a promoter to ease compliance requirements. However, he will continue as the Managing Director and CEO of the company.
