Paytm IPO: The proposal to launch the IPO of Paytm owned by One97 Communications has been approved by the company’s board. Paytm has informed in a letter sent to its employees and stakeholders that the board has approved to bring the country’s largest IPO. Apart from this, according to news agency Bloomberg, the company has also finalized the draft and red herring prospectus (DRHP), which can be filed with the capital markets regulator SEBI in July 2021 next month. Paytm can raise Rs 22 thousand crore through IPO in the October-December 2021 quarter. This will prove to be the biggest IPO of the country.
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Prices doubled in 5 days of IPO news
Before the news of Paytm’s IPO, the company’s share price in the unlisted market was around Rs 11-12 thousand per share. Within just 5 days of the news of the IPO, its price reached 21 thousand rupees. Based on unlisted share prices, the value of the company has exceeded Rs 1.1 lakh crore. Accordingly, the valuation of the company has exceeded that of many other companies in the banking and financial sector, such as IndusInd Bank, Bandhan Bank, PNB, SBI Cards and Payments Services, SBI Life Insurance and ICICI Prudential. However, the current valuation of Paytm is lower than the 2019 valuation at which the company raised funds.
Coal India’s biggest IPO so far
So far, the largest IPO in the country has been of the government company Coal India. In 2010, Coal India raised Rs 15,200 crore through IPO. At the same time, before this, Anil Ambani Group’s company Reliance Power had brought an IPO of 11 thousand crores. Last year SBI Payments and Cards launched an IPO of Rs 10,000 crore.