SEBI approves Paytm’s $2.2 billion IPO, company explores November listing

• The company intends to raise ₹16,600 crore from this issue.
• Half of this amount would be raised through fresh issues and the rest will be through sale of secondary shares.
• Paytm has reportedly decided to skip its IPO sale over valuation differences, as per a Bloomberg report.

One 97 Communications — the parent company of digital payments giant Paytm — has reportedly received a green light from the Securities and Exchange Board of India (SEBI) to carry out its initial public offering (IPO).

The company intends to raise ₹16,600 crore from this issue. Half of this amount would be raised through fresh issues and the rest will be through sale of secondary shares belonging to Paytm’s stakeholders.

The company is planning for a mid-November listing, according to a Moneycontrol report.

This will be India’s biggest IPO so far, surpassing Coal India’s, which raised ₹15,000 crore in October 2010.

Paytm is one of the biggest digital payments companies in India with offerings across several digital modes of payments like unified payments interface (UPI), credit and debit cards payments. It also offers wealth management solutions through Paytm Money and banking services through Paytm Payments Banks.

The company is currently valued at $16 billion, after raising $1 billion in November 2019 from T Rowe Price, Ant Group and Softbank Vision Fund. According to several media reports, Paytm is expected to be valued somewhere between $25 billion to $30 billion post issue.

Paytm has reportedly decided to skip its IPO sale over valuation differences, as per a Bloomberg report.

A source aware of the development told Business Insider that Paytm has decided to do away with the pre-IPO round in order to adhere to the timeline it set for itself. Besides this, the company source highlighted that they are not aware of any valuation difference between the investors and Paytm’s management.

SEE ALSO
H&M is partnering with a building materials company to achieve its sustainability goals. Here's a look at how they work together.

S&P 500 hits record high in 7th straight winning session amid strong earnings

WeWork gains 13% in long-awaited trading debut 2 years after failed IPO attempt