Paytm files for the biggest IPO of up to Rs16,600 crore
Paytm has filed for its IPO of up to Rs16,600 crore. Read more to know the details
On Friday, One97 Communications, Paytm's parent company, has filed draft prospectus for its initial public offering (IPO) of up to Rs16,600 crore, as reported by news agency Reuters. Paytm's IPO comprises of fresh issue of up to ₹8,300 crore, offer for sale of up to Rs8,300 crore. In the meeting held on July 12, the shareholders of One97 Communications (OCL) had recently given its nod for the IPO.
Details of the IPO
"The SoftBank-backed Indian digital payments startup Paytm has filed for its share sale of up to Rs16,600 crore ($2.23 billion), draft papers submitted to the market regulator SEBI showed on Friday", as reported by Reuters.
The booking running managers for the IPO are JPMorgan Chase, Morgan Stanley, ICICI Securities, Goldman Sachs, Axis Capital, Citi and HDFC Bank.
An issue of new shares worth Rs8,300 crore and an offer for sale worth ₹8,300 crore will be included in the IPO. Paytm is backed by investors including Berkshire Hathaway Inc, China's Ant Group and Japan's SoftBank.
The Noida-based company, which is owned by One97 Communications Ltd, said "it would use the IPO proceeds to strengthen its payment ecosystem and for new business initiatives and acquisitions."
Alibaba.Com Singapore E-Commerce Private held 7.2% stake in one97 pre-IPO.
Antfin (Netherlands) Holding B.V. held 29.6% stake in One97 pre-IPO.
According to the prospectus, "One97 posted a consolidated net loss of 16.96 billion rupees for the year ended March 31, lower than the previous year's 28.42 billion rupees loss. Revenue slipped 14.6% to 28.02 billion rupees."
The share sale could make it India's largest stock market debut ever, surpassing the IPO of the state-owned Coal India in 2010.
The shareholders of OCL, which owns brand Paytm, had recently approved plans of its Rs16,600 crore public offering which was put to vote at the extraordinary general meeting held on 12 July. They also approved the proposal that founder Vijay Shekhar Sharma, would not be identified as the "promoter" of the company.
This is to comply with Securities and Exchange Board of India (Sebi) rules requiring promoters of listed firms to have at least 20% of post-issue capital. Sharma, the chairman, managing director, and chief executive officer (CEO) of the company holds 9,051,624 equity shares of OCL, amounting to 14.61% of its total paid-up equity share capital.
However, recently, many top management personnel left the company ahead of its IPO. Amit Nayyar, president at Paytm, who was heading the company’s financial services division, tendered his resignation last month. In June, chief human resources officer Rohit Thakur also exited the company, after an 18-month stint. Earlier, Jaskaran Singh Kapany, Paytm’s head of marketing, left the company this year to join Xiaomi India as its chief marketing officer.
