Paytm IPO: Fintech platform Paytm’s parent company One97 Communications has received SEBI approval for its Rs 16,600 crore IPO. A source with knowledge of the matter said that Paytm will sell shares worth Rs 8,300 crore in the primary sale while shares worth Rs 8,300 crore will be sold in the offer for sale. Paytm’s plan is going to be listed in mid-November. The company had submitted an application for IPO in July.
Paytm’s IPO will be India’s biggest IPO ever. Earlier this record was held by Coal India. Coal India had raised around Rs 15,000 crore from its IPO a decade ago.
Vijay Shekhar started One97 in the year 2000. Initially the company started as a value-added service provider while later it evolved into an online mobile payments firm.
Pre-IPO share sale plan may be canceled
Payment company Paytm may cancel the pre-IPO share sale plan. Paytm’s plan so far was that before issuing the issue, it would raise Rs 2000 crore from the pre-IPO sale. People with knowledge of the matter said that due to the difference in valuation, the company may postpone the plan of pre-IPO sale.
According to ET, sources on the condition of anonymity said that according to advisors, Paytm is currently seeking a valuation of $ 20 billion. According to ET, according to unicorn tracker CB Insights, the valuation of the company was last fixed at $ 16 billion.
The company is getting demand from sovereign wealth funds and foreign institutional investors (FIIs) at valuations of $20-22 billion. Paytm plans to launch IPO from Diwali. It is waiting for approval from the market regulator SEBI for this.
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Paytm had filed documents for the Rs 16,600 crore IPO in July. This will include the issue of new shares as well as an offer for sale of Rs 8,300 crore from the shareholders of the company. Sources said that the company is yet to decide on the pre-IPO round. This will depend on the needs of the investor, taxes and lock-in period.
Paytm founder Vijay Shekhar Sharma and other shareholders will sell some of their stake through an offer for sale. Among the company’s major investors, Alibaba and its subsidiary Ant Group hold 38 percent, Elevation Capital holds 17.65 percent and Japan’s SoftBank holds 18.73 percent. Vijay Sharma holds about a percentage of the holding and will no longer be the promoter of Paytm after the listing.
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