The Noida-based digital payments giant Paytm is working towards raising an amount of Rs 16,600 crore, which would position it as the biggest stock market listing in Indian history.
It is currently waiting for the approval of a regulatory filing, while it mentions the Chinese fintech giant, Ant Group and the Japanese MNC Softbank as its financial backers.
On Friday, One97 Communications Ltd (the older name for Paytm) stated in a regulatory filing that as per the draft prospectus filed by them to the markets regulator Sebi, the mobilisation plan through the offer will be equally shared by the existing shareholders as well as newly issued shares.
Learn more details regarding the country’s biggest IPO here.
Paytm IP to be Valued at Rs 16.6 Crore
Until now, India’s biggest IPO has been the government-run coal mining major, Coal India, valued at an IPO of Rs 15,475 crore.
However, with Paytm’s Rs 16,600 crore valuation, which is currently seeking regulatory approval, the fintech major will sell new shares worth Rs 8,300 crore, in addition to existing investors selling their combined shares of Rs 8,300 crore in the stock.
As per Friday’s filing, Paytm will make use of Rs 4,300 crore IPO proceeds to acquire customers and merchants to strengthen its ecosystem.
It will use another Rs 2000 crore to invest in new business initiatives and acquisitions, states TOI.
According to sources, the offering values Paytm at
up to $25 billion or Rs 1.8 lakh crore.
As mentioned above, Paytm’s existing shareholders will sell their shares too in the upcoming offering.
This being said, some of the major backers of the fintech firm, like Ant Group, Softbank, Elevation Capital and Berkshire Hathaway Inc will also sell their stakes in the company.
Ant Group and Alibaba are the largest shareholders of Paytm with about 37% of its stakes. TOI states that the two entities are expected to combinedly bring down their stakes to less than 25% during the offering.
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