The firm was seeking a valuation of more than $20 billion based on feedback from initial investors, while advisors on the deal recommended a lower price, some said, asking not to be named because the information is private. According to unicorn tracker CB Insights, the company’s final value was $16 billion.
formally called One97 Communications Ltd., Paytm expects to tap into strong investor demand from the easy liquidity fueling India’s blockbuster listings this year. Following intense competition from Walmart Inc’s Flipkart and Amazon.com Inc, the company had reported a 10% drop in revenue during the year ended March 2021, cutting its e-commerce and cloud sales by the same amount.
People said a final decision has not been taken and Paytm may still consider pre-IPO sale at a lower valuation. Some said regulators are expected to clear the listing in the coming days.
Company representatives did not respond to an email seeking comment.
Morgan Stanley, Goldman Sachs Group Inc., Citigroup Inc. and banks including ICICI Securities Ltd. are running the share sale. Paytm may consider pre-IPO placement of Rs 2,000 crore
Draft Red Herring Prospectus (DRHP) Filed with the Securities and Exchange Board of India (SEBI) on 16 July.