SUMMARY
The board of directors has reportedly approved the company's plans for an IPO
Paytm’s much-anticipated public market debut will include a sale of new and existing shares
It is targeting a valuation of $25 Bn - $30 Bn, a big jump from its current $16 Bn valuation
Paytm parent One97 Communications’ board of directors has reportedly approved the company’s plans for an initial public offering or IPO. The fintech company is learnt to have received the in-principle approval for the IPO, which is claimed to be one of the largest in India.
The eight-member board is reported to have met on Friday, May 28, to give its approval, a day after the company’s IPO plans were reported. The fintech giant is planning to raise INR 21,800 Cr ($3 Bn) in the public offering by November this year. The Vijay Shekhar Sharma-led company is targeting a valuation of $25 Bn – $30 Bn, a big jump from its current $16 Bn valuation.
Paytm’s much-anticipated public market debut will include a sale of new and existing shares to meet regulatory obligations in India, and offer partial exit to some existing backers. The IPO process is expected to start from late June or early July. Paytm has shortlisted Morgan Stanley, Citigroup Inc and JPMorgan Chase & Co as potential advisors.
Founded in 2000 by Vijay Shekar Sharma, One97 Communications started out as a prepaid and mobile recharge platform before Paytm was launched in 2010. Paytm is today one of the biggest digital payments companies in India with its offering spread across digital payments like UPI, credit and debit cards, wealth management through Paytm Money, banking services through Paytm Payments Bank. insurance services, mutual funds and more.
Paytm is likely to be the largest IPO debut in India in a year in which food aggregator Zomato and used cars marketplace CarTrade, epharmacy startup PharmEasy, beauty ecommerce brand Nykaa and insurtech startup PolicyBazaar are likely to list publicly. Last week, retail pharmacy chain MedPlus too got the wheels rolling for its IPO scheduled for this year. The company shortlisted Axis Capital, Nomura and Edelweiss Financial Services as the advisors to prepare for the IPO, through which it plans to raise INR 2,000 Cr ($275 Mn).
According to reports last week, India’s first online pharmacy unicorn PharmEasy, is reportedly exploring options for its initial public offering (IPO) towards the end of 2021 or early next year in order to raise INR 3,000 Cr to INR 3,700 Cr ($400 Mn- $500 Mn), at a valuation of INR 21,800 Cr ($3 Bn). The share sale proposal will include both primary as well as secondary share component, where some of the early backers of the company will take a partial exit.
