Weekly wrap | IPO Corner: Paytm files DRHP for Rs 16,600 crore issue, OLA Electric raises $100 million


This week has been buzzing with a flurry of monster-sized IPOs in the Indian startup ecosystem. Here are all the big announcements that made headlines.

Weekly wrap | IPO Corner: Paytm files DRHP for Rs 16,600 crore issue, OLA Electric raises $100 million
This week has been buzzing with a flurry of monster-sized IPOs in the Indian startup ecosystem. Here are all the big announcements that made headlines.
Paytm files DRHP for Rs 16,600 crore IPO
Digital payments startup Paytm has filed a draft red herring prospectus (DRHP), for an initial public offering (IPO) of up to Rs 16,600 crore. The total issue size of Rs 16,600 crore consists of a fresh issue and an offer for sale of up to Rs 8,300 crore each, papers submitted to Sebi showed. The primary issue size of Rs 8,300 crore will include Rs 2,000 crore pre-IPO placement.
Paytm’s investors ANT Financial, Alibaba, Softbank, Elevation Capital could sell shares through OFS. With the total issue size at Rs 16,600 crore, Paytm sees a valuation of $30 billion.
Meanwhile, Ratan Tata, the chairman emeritus of Tata Sons, is looking to sell some shares in Paytm as a part of its IPO, the DRHP showed. The DRHP also mentions RNT Associates of Ratan Tata as a selling shareholder. RNT Associates holds 75,000 equity shares in Paytm. The company has been actively rejigging its Board in the run-up to its IPO, seeing the exit of Chinese nationals. Former WhatsApp business head Neeraj Arora has rejoined the Paytm board as an additional director and Vivek Mathur has replaced Mukul Arora as an alternate director.
Zomato IPO subscribed over 38 times on Day 3 so far
The initial public offering (IPO) of the online food delivery platform Zomato has been subscribed 38.25 times so far on July 16, the last day of bidding. The portion reserved for retail investors in the IPO was subscribed 7.45 times till 6:00 pm. The portion set aside for the non-institutional investors (NII) was subscribed 32.96 times, while the portion reserved for qualified institutional buyers (QIB) was subscribed 51.79 times - the highest among the three groups of investors. The IPO size has been reduced to Rs 5,178.49 crore from Rs 9,375 crore earlier as Zomato already raised Rs 4,196.51 crore from 186 anchor investors on July 13, a day before the public opening of the issue.
BharatPe co-founder Ashneer Grover makes Rs 150 crore personal application in Zomato IPO
BharatPe CEO and co-founder Ashneer Grover has made a Rs 150 crore personal application in the Zomato IPO. Speaking to CNBC TV-18, Grover said he is building a pool of $100 million for the Delhivery, Nykaa, and Policybazaar IPOs. He added that he is allocating his personal savings to leverage himself using IPO financing and is looking to apply for $15 million-plus in every IPO that comes up in the tech space. The application to the Zomato IPO was made on July 16 via the HNI segment through Kotak Wealth Management.
Paytm Money launches new feature, users can pre-book Zomato IPO
Digital brokerage platform Paytm Money is now letting users apply for Initial Public Offerings (IPO) before the actual IPO Opening in the markets. Zomato was the first IPO on Paytm Money to go live with this feature and saw huge demand coming from young and first-time investors. 27 percent of people who completed the Zomato IPO application on Paytm Money's platform were less than 25 years old while 60 percent were less than 30 years old, Moneycontrol reported.
OLA Electric raises $100 million ahead of IPO, to launch E-scooter in less than 20 days
Ola Electric, the electric vehicles focused arm of ride-hailing giant Ola, has raised $100 million of debt from the Bank of Baroda. This 10-year debt will be used in funding and financial closure of Phase-I of the Ola Future factory.
Sources told CNBC TV-18 that the launch of OLA’s electric scooter is less than 20 days away. It will be launched in at least four colors and the first Ola scooter will be positioned for private use and personal mobility. The company will initially focus largely on doorstep delivery of vehicles, sources added.
On Thursday, the company began taking bookings for its upcoming electric scooter for Rs 499.
Mobikwik files for Rs 1,900 crore IPO
Digital payments startup Mobikwik, backed by Sequoia Capital and Bajaj Finance has filed for an IPO of up to Rs 1900 Crore with the markets regulator Sebi on Monday. About Rs 1,500 crore will be primary share sales while up to Rs 400 crore will be secondary share sales where existing investors can sell their stake. The promoters plan to sell about Rs 190 crore of their stake, while Sequoia and Bajaj Finance will sell Rs 95 crore and Rs 69 crore respectively, filings said. Mobikwik was last valued at $700 million when it raised $20 million last month from Abu Dhabi Investment Authority.
Sequoia Capital to not be locked-in for 1-year post-Zomato, Mobikwik IPOs
Sequoia Capital India will not face a one-year share lock-in and can cash out of both Zomato, which launched its IPO on Wednesday, as well as from Mobikwik, which is gearing up for an IPO and released its draft red herring prospectus this week, thanks to SEBI's guidelines for foreign venture capital investors.
In Zomato, Miare-Naver will also be exempted from the lock-in period, as per the Red Herring Prospectus. Mobikwik's DRHP also says that all equity shares held by Sequoia Capital India Investment Holdings III shall be exempt from the lock-in requirements. Sequoia Capital is already participating in Mobikwik's Rs 400 crore offer for sale and is looking to sell Rs 94 crore. Sequoia Capital India holds a 17.17% stake in Mobikwik and about 7.3% in Zomato.
PayMate to list?
B2B payments platform for SMEs PayMate evaluates an initial public offering as per Moneycontrol. The startup backed by digital payment giant Visa and Lightbox is looking at an FY22 listing. The IPO will unlock value for the firm, help to raise growth capital, and also facilitate a partial exit for its multiple investors, sources told Moneycontrol.