Backed by Paytm, Japan’s SoftBank and China Alibaba, has also finalized plans to increase the total IPO size to Rs 1,700 crore, taking the total to Rs 18,300 crore (about $2.5 billion).
ET was
First to report last week That Paytm will increase the size of its IPO by Rs 1,000-2,000 crore, which will cross the Rs 18,000 crore mark. The Rs 1,700 crore increase will be entirely through OFS and the primary capital raising component will remain unchanged at Rs 8,300 crore, people informed on the matter.
This means Ant Group, which owns a little over 29% in the Noida-based company, will sell shares worth up to about Rs 5,000 crore, reducing its stake in Paytm’s parent firm One97 Communications to less than 25%.
Paytm
Received approval from capital markets regulatorThe Securities and Exchange Board of India (SEBI), is expected to file its RHP (Red Herring Prospectus) for the IPO and in the coming days to reflect the increase in the issuance size. This is looking at a public market listing –
Billed as one of the biggest IPOs in at least a decade – By mid-November.
And
informed of On July 16, Ant Group was looking to sell around 5% in Paytm. Alibaba separately owns about 7% of the fintech firm.
SoftBank, Elevation Capital and Paytm founder Vijay Shekhar Sharma will be among the other shareholders to sell their stake To bet 10,000 crore in OFS.
Ant is also required to reduce its stake below 25% as the payments firm is getting listed as a ‘professional managed company’.
As per the rules, no single entity can hold more than 25% in a ‘professionally managed company’. Sharma was also declassified as its promoter in July.
A Paytm spokesperson declined to comment.
A person familiar with the discussion said, “They were considering this increase in the issue size due to increased interest in the IPO fueled by the abundance of liquidity among global investors. ET reported earlier this month that marquee global investors were in talks for an anchor investor slot in Paytm’s IPO.
News Wire Bloomberg had valued Paytm at $25-$30 billion. Sources said Paytm is looking at a valuation of around $20-$22 billion. Paytm was
When it raised $1 billion, it was valued at $16 billion in November 2019.
Paytm’s IPO comes at a time when online food delivery app
Zomato got off to a great start With listings of over Rs 9,000 crore in July on Dalal Street and a Chennai-based software as a service (SaaS) company Freshworks
Chosen to debut in the public market Last month on the Nasdaq Stock Exchange.
Omni-channel beauty and personal care retailer
Nykaa will launch its IPO on October 28It has set a target of raising Rs 5,352 crore at a valuation of $ 7.1 billion. fintech company
Policybazaar is also in the final stages of going public After SEBI approval, while startups like MobiKwik, Oyo Hotels & Homes and Delhivery are listed in various stages.