Paytm set for stock market debut today after $2.5 billion IPO

New Delhi: Indian digital payments company Paytm is set to make its stock market debut on Thursday, after its $2.5 billion initial public offering (IPO), India`s largest, was oversubscribed last week.

Paytm, which counts China`s Ant Group and SoftBank among its backers, raised $1.1 billion from institutional investors and last week received $2.64 billion worth of bids for the remaining shares on offer, or 1.89 times.

The company, headquartered on the outskirts of India`s capital New Delhi, has priced its 85.1 million-share issue at the top of the range at 2,150 rupees ($28.92) each. It had flagged a price range of 2,080-2,150 rupees per share for the deal.

Some market analysts said they expected the shares to nudge higher on their debut despite Paytm`s expensive valuation.

Engineering graduate Vijay Shekhar Sharma founded Paytm in 2010 as a platform for mobile recharges. The company grew quickly after ride-hailing firm Uber listed it as a quick payment option in India and its use swelled further in late 2016 when New Delhi`s shock ban on high-value currency notes boosted digital payments.

Paytm`s success has turned Sharma, a school teacher`s son, into a billionaire with a net worth of $2.4 billion according to Forbes. Its IPO has also minted hundreds of new millionaires in a country where per capita income is below $2,000.