One97 Communications, the parent organization of Noida-based digital payment system company Paytm may file its draft red herring prospectus (DRHP) with the regulatory body Securities and Exchange Board of India (SEBI) after the firm’s extraordinary general meeting which is set to take place in Delhi on July 12.
The DRHP has been filed for a domestic Initial Public Offering (IPO) where fresh issue and the offer of sale by selling shareholders are included. The combined amount has resulted to be in the range of $2.2 billion to $2.3 billion. If necessary, the combined size would be increased.
A person familiar with the matter told Moneycontrol, that once the shareholders have approved the IPO at the EGM, the papers are planned to be filed with the regulator. The person continued, “So, it could be filed on the same day or a few days later.”
Furthermore, as per Reuters, investment banks such as Goldman Sachs, JPMorgan Chase & Co. and Axis Capital have been hired by the firm for the IPO. The aim is to attain a valuation between $24 billion and $25 billion for the “mega issue.”
Paytm is backed by shareholders like Japan-based SoftBank Group Corp., American MNC Berkshire Hathaway Inc., an affiliate company of China’s Alibaba Group called Ant Group as well as Alibaba Group.