Digital payments and e-commerce company Paytm is reportedly set to float the biggest Initial Public Offer in the Indian capital markets in at least a decade between November 8 to November 10. A source familiar with the matter disclosed that the company has filed a Red Herring Prospectus (RHP) with the (Registrar of companies) to schedule the launch of the offer between the two dates.
Meanwhile, another source has stated that Paytm’s anchor placement is scheduled for November 3, and will see participation from large global institutional investors.
Paytm’s planned IPO will surpass the Rs 18,000 crore mark after it was earlier reported that the company is looking to increase its IPO size by Rs 1,000-2,000 crore due to surging demands.
The Fintech major has thereafter increased the issue size from Rs 16,600 crores to Rs 18,300 crores. The increase of Rs 1,700 crore will reportedly be fully through the Offer for Sale which will now amount to Rs. 10,000 crores and the primary capital raise component will remain fixed at Rs 8,300 crore.
China’s Ant Group, the largest shareholder in Paytm that owns a stake of a little over 29 per cent in the company, is expected to administer nearly 50 per cent of the secondary share sale through the OFS. Ant Group would sell shares worth up to around Rs 5,000 crore, bringing its stake to below 25 per cent in One97 Communications, the parent firm of Paytm.
Japan’s SoftBank, Elevation Capital and Paytm founder Vijay Shekhar Sharma will be among the other shareholders to sell part of their stakes in the Rs 10,000 crore OFS.
Morgan Stanley, Goldman Sachs, Axis Capital, ICICI Securities, JP Morgan, Citi and HDFC Bank are the investment firms working on the IPO according to Paytm’s DRHP filed before the Securities and Exchange Board of India.
Sources have estimated that Paytm is looking to achieve a total valuation of around $20 billion to $22 billion with the planned IPO. On the other hand, Bloomberg has pegged Paytm’s valuation at $25-$30 billion following the offer issuance.