SUMMARY
The offer would include a fresh issue of INR 8,300 Cr worth of shares and an offer for sale (OFS) of INR 10,000 Cr
The IPO will open at a price band of INR 2,080-INR 2,150
Under the revised offer, Paytm founder and CEO Vijay Shekhar Sharma will sell shares worth up to INR 402.65 Cr
The much-awaited IPO of One 97 Communications, which runs the digital payments giant Paytm, will open on November 8th and close on November 10th. Paytm had received SEBI approval for its IPO on October 22nd.
The Delhi NCR based fintech decacorn has increased IPO offer size to INR 18,300 Cr, from its initial offer of INR 16,600 Cr, the fintech giant said in its red herring prospectus (RHP).
The offer would include a fresh issue of INR 8,300 Cr worth of shares and an offer for sale (OFS) of INR 10,000 Cr. The initial offer consisted of an OFS worth INR 8,300 Cr.
The IPO will open at a price band of INR 2,080-INR 2,150. The company is rumoured to put the valuation at around $20 Bn.
Under the revised offer, Paytm founder and CEO Vijay Shekhar Sharma will sell shares worth up to INR 402.65 Cr. Chinese tech giant Alibaba also will offload its stock in the IPO. Alibaba-led Antfin (Netherlands) Holding B.V. will sell stocks worth up to INR 4,704.43 Cr and Alibaba.com Singapore ECommerce Private Limited will offload stocks worth INR 784.82 Cr.
SoftBank’s SVF Panther (Cayman) Ltd will sell shares worth up to INR 1,689.03 Cr.
Alibaba-led Ant Group, the single largest shareholder, holds 29.71% stake in the company, while SoftBank Vision Fund has 19.43% stake. Founder Vijay Shekhar Sharma currently owns 14.67% stake in the fintech giant.
Founded by Vijay Shekhar Sharma in 2000, Paytm began its journey as a value-added service provider. It evolved over the years with different fintech solutions to become an online mobile payments firm.
Today, Paytm parent — One97 Communications operates Paytm Payments Bank Limited, Paytm General Insurance Limited, Paytm Life Insurance Limited, Paytm Money Limited, Paytm E-Commerce Private Limited, Paytm Entertainment Limited, among other smaller entities. These combine to give Paytm a strong acquisition channel for its core business of payments and fintech services.
The company recorded an improvement in its revenue in the April-June FY22. For the quarter ended June 2021, the fintech decacorn has seen a rise in its revenues driven by its payments and financial services offerings, as per the company’s RHP.
The company’s revenue from operations is up by 62% to Rs 890.8 Cr in Q1FY22, from INR 551..2 Cr in Q1FY21. During the period under review, its payments and financial services revenue stood at INR 689.4 Cr contributing to 77% of its total revenue.
However, its losses in the April-June quarter of the current fiscal widened by 31% to INR 378.8 Cr from INR 288.5 Cr incurred during the same period of the last financial year. However, the consolidated loss in Q1 FY22 narrowed significantly in comparison to the mammoth loss of INR 1,698.3 Cr the preceding quarter (January-March 2021).
