Nearly 350 employees of digital payments and financial services platform Paytm, including former and current employees are set to become millionaires due to the company's $2.5 billion initial public offering (IPO).
According to a Reuters report, each of these Paytm employees will now have a net worth of at least Rs 1 crore. Notably, with a share sale of Rs 18,300 crore, Paytm IPO has become the largest fintech IPO in the Asia Pacific region.
Now, in a bid to understand that how these former and current employees will become millionaires, we need to go through a story of an ex-employee of Paytm named Siddharth Pandey.
Pandey who is an electronics engineer by profession joined the company 9 years ago despite his father's objection. When he joined the company at that time paytm was a small company with less than 1,000 employees.
While remembering his conversation with his father, Pandey asserted that his father was very demotivating and had no confidence in the company at that time.
'What is this Paytm?!', he quoted his father as saying at that time.
But presently, he (my father) is very happy. They've just told me to stay grounded." he said.
Pandey was with the Vijay Shekhar Sharma's Paytm for nearly seven years and had deposited thousands of shares during his tenure in the company.
Now, let's use some basic math here to understand the scenario. On November 12, the price of a share was Rs 2,150, so according to this figure, if we do the calculation the number of shares Pandey holds will soon be worth more than $1 million.
Paytm IPO allotment date:
Meanwhile, Paytm IPO allotment status opened for allotment on Tuesday i.e. November 16, 2021. It's initial public offering (IPO) which closed on November 10 has created history as it was subscribed 1.89 times.
Paytm's IPO worth Rs 8300 crore was fully subscribed in just three days. The IPO has received good response from foreign institutional investors.
As per the stocks markets data, bids have been received for 5.24 crore equity shares against 483 crore shares in the IPO of Paytm's parent company One97 Communications Limited.
Retail investors have subscribed 1.46 times more than the 87 lakh shares reserved. On the other hand, non-institutional investors placed bids for only 8 per cent of the 1.31 crore shares reserved for them. In this, fresh issues worth Rs 8300 crore have been issued while shares worth Rs 10,000 crore have been sold through offer for sale (OFS).
Paytm has raised Rs 8,235 crore from anchor investors.