Paytm Launching IPO for Rs. 16,640 crores

Paytm’s $2.23 billion (roughly Rs. 16,640 crores) raise through the IPO would make it among India’s biggest public listings.

Paytm, backed by SoftBank, has filed for initial public offering (IPO) of up to $2.23 billion (about Rs 16,640 crore), according to the draft paper submitted to the country’s markets regulator on Friday.

The IPO will consist of an issue of fresh shares of Rs. 8,300 crore and an offer for sale for Rs. 8,300 crore, said Paytm, which is backed by investors including Berkshire Hathwa, China’s Ant Group and Japan’s SoftBank.

The Noida based company, owned by One97 Communications, said it will use the IPO proceeds to strengthen its payments ecosystem and fund new business initiatives and acquisitions.

One97 posted a consolidated net loss of Rs. 1,696 crore for the year ended 31st March, lower than the previous year. According to the brochure, a loss of Rs 2,842 crore. Revenue declined 14.6 per cent to Rs. 2,802 crore.

What started as a platform for mobile recharging a decade ago, Paytm grew rapidly when ride-hailing firm Uber listed it as an instant payment option.

Its IPO plans come amid a pandemic-fueled expansion in India’s digital economy and an intense battle for market share with Alphabet’s Google Pay and Facebook-owned WhatsApp Pay.

Adoption of digital payments has increased since India’s 2016 ban on high-denomination currency banknotes, allowing Paytm to expand its services to include insurance and gold sales, movie and flight tickets, and bank deposits and remittances. helped to do.

A source told Reuters on Monday that the company was planning to raise $268 million (about Rs 2,000 crore) in a pre-IPO funding round.

Several Indian startups plan to go public to infuse liquidity brought in by foreign funds. Some of the closely watched ones include food delivery startup Zomato, Walmart-owned e-commerce giant Flipkart, beauty brand Nykaa and ride-hailing service Ola.

Paytm’s $2.23 billion (approximately Rs 16,640 crore) raised through an IPO would make it India’s largest public listing after state-run miner Coal India in 2010 and Reliance Power in 2008.

JPMorgan Chase, Morgan Stanley, ICICI Securities, Goldman Sachs, Axis Capital, Citi and HDFC Bank are the booking running managers for the IPO.

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