Digital payment and financial services company received approval in principle from the company’s board of directors to raise approximately Rs 22,000 crore through an initial public offering (IPO) during the October-December quarter of this year, according to a source Of the industry.
The company is considering an enterprise value of over Rs 2 lakh crore for the IPO.
The board of directors of Paytm has given its approval in principle to the mega IPO scheduled for the October-December quarter. The company expects to raise approximately Rs 21,000-Rs 22,000 crore from the IPO existing investors to offload part of their stake, ”the source familiar with the development told PTI.
The company’s board meeting took place on Friday.
When contacted, the spokesperson for Paytm declined to comment.
This is probably one of the biggest IPOs in India if the company is able to hit the target according to its plan.
Paytm shareholders include Alibaba’s Ant Group (29.71%), SoftBank Vision Fund (19.63%), Saif Partners (18.56%) and Vijay Shekhar Sharma (14.67%).
AGH Holding, T Rowe Price, Discovery Capital and Berkshire Hathaway hold less than 10% of the shares in the company.
Paytm claims to be around 30-50% larger than its segment competitors, with over 1.4 billion monthly transactions.
The company had reported a 40% reduction in loss and an increase in revenue to Rs 3,629 crore on an annual basis in the 2019-20 fiscal year.
In another earlier development, Paytm said it aims to raise around $ 3 billion during its IPO (IPO) scheduled for later this year, a source familiar with the story being told Your story.
The IPO could value the digital payments provider at around $ 25 to $ 30 billion and is expected to take place in November, they added, asking not to be named. Paytm declined to comment on the story.
Investment banks, including Citigroup, Morgan Stanley and JPMorgan, are vying to help with the long-awaited IPO, the source said, although the process is not expected to begin until the end of June.
(Disclaimer: Additional general information has been added to this PTI copy for context)