Paytm IPO: The company has submitted the draft documents for the IPO with the Securities and Exchange Board of India (Sebi) on July 15. The company expects the regulator’s response on this to be received by mid-September.
Digital payments and financial services company Paytm intends to bring its initial public offering (IPO) of Rs 16,600 crore by October. Sources said that the company wants to bring its IPO as soon as possible. It could come by October. The company has submitted the draft documents for the IPO with the Securities and Exchange Board of India (SEBI) on July 15.
The company expects the regulator’s response on this to be received by mid-September. The company plans to list as soon as possible after that.
SEBI will reply on documents in two months
A source with knowledge of the matter said, “It is expected that SEBI will reply on the documents in two months.” Once the documents are received, Paytm will apply for the IPO. The source said that this process is subject to regulatory approvals. If it goes according to the deadline, then the IPO will come by October. E-mails sent to Paytm in this regard did not elicit any response.
In Paytm’s IPO, 75 percent is reserved for Qualified Institutional Buyers (QIBs). In this, up to 60 percent can be kept safe for anchor investors. 15% of the net offer can be allocated to non-institutional investors. 10% can be reserved for retail investors.
Where will Paytm spend the capital from the IPO?
The proposed draft, filed by One97 Communications, put the value of Paytm at $16 billion. 4,300 crore out of the proceeds from the IPO, this company will try to strengthen the ecosystem through acquisition of consumer and merchants. Apart from this, the company will spend Rs 2,000 crore on other business initiatives and acquisitions.
Big change in board before IPO
Let us tell you that in order to avoid any problem in the IPO, the company had made a major reshuffle in its management last week. The company has appointed Americans and Indians by replacing all Chinese citizens on the board. There is no change in the existing share holdings. According to regulatory documents, Alipay representative Jing Jiandong, Ant Financial’s Guoming Cheng, and Alibaba representatives Michael Yuen Zhen Yao (US citizen) and Ting Hong Kenny Ho are no longer directors of the company.
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