Paytm Likely To File DRHP For Its $2.3 Bn IPO On July 12

SUMMARY

The money will be raised by the sale of new Paytm stocks as well as secondary offerings of shares at an expected valuation of $24-25 Bn

Paytm shareholders include Alibaba's Ant Group (29.71%), Softbank Vision Fund (19.63%), Saif Partners (Elevation Capital) (18.56 %), Vijay Shekhar Sharma (14.67%). AGH Holding, T Rowe Price and Discovery Capital, Berkshire Hathaway hold less than 10%

The prospectus will be filed shortly after Paytm's extraordinary general meeting (EGM) of shareholders in Delhi on July 12, 2021

Digital payments giant Paytm, operated by One97 Communications, is planning on filing a draft red herring prospectus on July 12 for a domestic initial public offering (IPO) that is aimed at raising $2.3 Bn.

According to a report from Reuters, the money will be raised by the sale of new Paytm stocks as well as secondary offerings of shares at an expected valuation of $24-25 Bn with an option to raise the amount at a later stage if required.

The planned IPO is expected to include a fresh issue of equity shares by the company and an offer-for-sale of equity shares by the existing shareholders of the company.

Currently, Paytm shareholders include Alibaba’s Ant Group (29.71%), Softbank Vision Fund (19.63 %), Saif Partners (18.56%), Vijay Shekhar Sharma (14.67%). AGH Holding, T Rowe Price and Discovery Capital, Berkshire Hathaway hold less than 10% stake in the company.

According to the sources, quoted by Reuters, the prospectus will be filed shortly after Paytm’s extraordinary general meeting (EGM) of shareholders in Delhi on July 12.

Additionally, the company has hired JPMorgan Chase, Morgan Stanley, ICICI Securities, Goldman Sachs, Axis Capital, Citi and HDFC Bank for the IPO.

Paytm’s revenue is expected to approximately double by the financial year 2023 to over INR 7,000 Cr with the non-payments segment contributing around 33% of it.

This could 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.

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 and more.