Paytm to file draft prospectus for Rs16,600-cr IPO next week: report
06 July 2021
One97 Communications Ltd, the parent of payments firm Paytm, will file a draft prospectus, on 12 July, for raising around Rs16,600 crore ($2.23 billion) through an initial public offer (IPO) in the domestic market, reports citing sources close to the development said on Monday.
The offer will include new Paytm stock as well as a secondary offer of shares, with an option to raise the amount at a later stage if required, reports said, adding that this would give Paytm a valuation of $24 billion to $25 billion, say reports.
At $2.23 billion, Paytm's proposed IPO will make it India's third-biggest public listing after state-run miner Coal India Ltd (about $3.3 billion) in 2010 and Reliance Power (around $2.4 billion) in 2008, according to reports.
The reports said the prospectus will be filed shortly after Paytm's extraordinary general meeting to be held in Delhi on 12 July, possibly on the same day, citing sources.
Noida-based Paytm, which is backed by China's Alibaba and Japan's SoftBank, proposes to sell up to Rs12,000 crore in new stock with an option to retain over-subscription of up to 1 per cent.
The offer for sale (OFS) option, where Paytm’s investors can directly sell their stakes during the IPO, will form the rest of the issue size, of about $600 million (Rs4, 580 crore).
Paytm may also seek shareholders’ approval to increase the size of the IPO to nearly Rs19,318 crore ($2.6 billion) closer to the date of its proposed, say reports.
Ant Group and Alibaba own nearly 38 per cent of One97 Communications, Paytm’s parent entity. SoftBank holds 18.73 per cent, while Elevation Capital (formerly SAIF Partners) has a 17.65 per cent stake.
JPMorgan Chase, Morgan Stanley, ICICI Securities, Goldman Sachs, Axis Capital, Citi and HDFC Bank are helping Paytm in the rollout of the IPO, the report added.