₹16,600 crores to be raised by Paytm through IPO

A draft document to raise ₹16,600 crores through a public offering has been filed by the parent company of fintech platform Paytm.

Being the latest among the internet companies that are listing on the Indian stock exchanges, a draft document to raise ₹16,600 crores through a public offering has been filed by the parent company of fintech platform Paytm, one97 Communications, according to a report released by Moneycontrol.

₹8,300 crores shall be an offer for sale which would facilitate the existing investors to sell the shares, while ₹8,300 crores shall be the primary share sales.

For investing in new business initiatives, strategic partnerships, and acquisitions, ₹2,000 crores shall be used, while for growth including customer and merchant acquisition, ₹4,300 crores of proceeds shall be used as per the draft prospectus.

Over a decade ago, the record of being India’s biggest public issue was held by Coal India which had raised around ₹15,000 crores and now it is this upcoming public issue, underscoring the appetite for the new age companies among institutional investors.

The draft documents have also been filed by MobiKwik while on 13th July Zomato’s Initial public offer had opened for subscription. Hoping to take the advantage of the evident positive response coming from institutional investors along with positive momentum in the markets and overseas funds, Nykaa and Policybazaar are also expected to follow the suit.

Not owning the requisite 20% stake in the firm, and approval by the shareholders was given for Paytm founder and CEO Vijay Shekhar Sharma to be de-classified as a promoter.

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