Bangalore | Mumbai: PaytmPeople with knowledge of the matter said that the initial public offering (IPO) of Rs 16,600 crore, billed as one of the largest in India, will increase the size of the offer by around Rs 1,000-2,000 crore. is expected to be. This would largely be through secondary share sales – technically known as an offer for sale – where existing investors would sell the shares.

The development comes at a time when Paytm’s parent One97 Communications – which houses Paytm and its fintech branches – is expected to get approval from the capital markets regulator, the Securities and Exchange Board of India, in the next few days.

Sources said Paytm may also increase the primary component by issuing fresh shares. “The move to increase the offer size has come
After receiving SEBI’s comments which are minor in nature. Due to the high interest in the startup IPO, the company has taken a call to increase the offer size,” said one of the people briefed on the matter.

“They (Paytm) are aiming to get listed by the second week of November,” the person said.

“They (Paytm) have decided to increase the offer size by at least Rs 1,000 crore, but talks are on to increase it further and the IPO (now) could be around Rs 18,000 crore,” said a person aware of its plans. Is.’

Draft Red Herring Prospectus (DRHP)Paytm had said it would raise Rs 16,600 crore, which would be split equally between the fresh issuance of shares and the secondary sale. In a secondary sale, existing investors sell the stake, and the money does not go into the company’s coffers.

DRHP Listed Founder Vijay Shekhar Sharma, Japan’s SoftBank Group, Ant Group and Elevation Capital as selling shareholders, all of whom will trim a portion of their stake in OFS.

A Paytm spokesperson declined to comment on the increase in the size of its IPO.

Considering the size of Paytm and its position in the country’s fintech segment, the IPO is expected to be a significant event for the startup ecosystem in India, as follows food delivery apps.
Zomato listings worth over Rs 9,000 crore In July.

According to Paytm’s DRHP, 75% of its public offering will be held for Qualified Institutional Buyers (QIBs), while 15% is for non-institutional investors and the rest for retail investors. Up to 60% of the QIB share can be allocated to anchor investors.

ET reported earlier this month that Paytm’s IPO
was interested From the likes of Canada’s CPPIB, US-based asset manager Alkeon Capital as well as funds managed by Morgan Stanley and Goldman Sachs. The new investors join the list of bidders who are in talks to invest in Paytm’s anchor investment as well as its IPO. News Wire Firm unlikely to raise funds in Bloomberg’s pre-IPO placement
informed of on Thursday.

According to sources, Paytm is seeking a valuation of $20-22 billion in the IPO. The company was valued at around $16 billion when it last raised funds two years ago.

“Some global investors have shown interest at higher valuations, but the company has indicated to investors that it may settle for anywhere between $20 billion and $22 billion,” said a person familiar with the discussion. Other sources said the response to its IPO issue has been muted so far, reducing its valuation.

SEBI approval Paytm IPO This comes at a time when many new age internet firms have either listed on exchanges or have initiated proceedings to do so. Indian-origin SaaS startup Freshworks Inc.
Chosen to debut in the public market While on Nasdaq
Nykaa will launch its IPO on October 28. Policybazaar, MobiKwik, Pine Labs and Delhivery among many others have IPOs in the pipeline.

Paytm will use most of the proceeds from the IPO to strengthen its businesses in verticals such as credit, insurance and e-commerce, as well as acquire more merchants and retain customers, it said in its DRHP.

The company reported a consolidated loss of Rs 1,701 crore on revenue of Rs 2,802.4 crore in FY2011 and Rs 2,942.4 crore on revenue of Rs 3,280.8 crore in FY10, according to its DRHP.