Paytm IPO to make around 350 employees millionaires
Fintech firm Paytm’s $2.5 billion (Rs 18,300 crore) initial public offering will produce more than 350 employees with a net worth of one crore owing to the ESOPs (employee stock options) they hold
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Bengaluru, 13 November Fintech firm Paytm's $2.5 billion (Rs 18,300 crore) initial public offering will produce more than 350 employees with a net worth of one crore owing to the ESOPs (employee stock options) they hold.
The Rs 18,300-crore IPO had been subscribed by 1.89 times on the final day of subscription on November 10. It received bids for 9.14 crore equity shares against offer size of 4.83 crore shares.
While the portion set aside for retail investors was subscribed 1.66 times, the reserved portion of non-institutional investors (NIIs) was subscribed 24 per cent, and qualified institutional buyers have put in bids 2.79 times the portion set aside for them.
With the end of Paytm's IPO, this became the largest fund raising ever in Indian market by any Indian company.
Meanwhile, the stellar listing of food delivery platform Zomato has already created around 18 dollar-millionaires (around Rs 7.5 crore or more) as the outcome of the IPO process. The company had a stellar listing on July 23 with the market capitalisation of the internet startup breaching Rs 1 lakh crore, enabling the company to enter the top 100 elite club of listed companies.
In 2018, when Walmart acquired Flipkart, it had reserved $500 million to buy back ESOPs from Flipkart staffers. This buyback had turned more than 100 employees into millionaires.
Many of these millionaire employees are likely to turn angel investors, supporting the startup ecosystem in coming days.
