Paytm raises IPO size to Rs 18,300 cr; Ant to offload shares worth Rs 5K cr

Digital financial services platform Paytm has raised its initial public offering (IPO) size to Rs 18,300 crore from the earlier Rs 16,600 crore, said sources in the know. Roughly half of the offer for sale (OFS) in Paytm’s IPO, which recently got approval from the Securities and Exchange Board of India (Sebi), will be done by Chinese investor Ant Financial. The OFS size will now inch up to Rs 10,000 crore, which means that Ant Financial will offload shares worth Rs 5,000 crore, sources confirmed. In the draft red herring prospectus filed by the company, the OFS size was Rs 8,.....
Digital financial services platform Paytm has raised its initial public offering (IPO) size to Rs 18,300 crore from the earlier Rs 16,600 crore, said sources in the know.

Roughly half of the offer for sale (OFS) in Paytm’s IPO, which recently got approval from the Securities and Exchange Board of India (Sebi), will be done by Chinese investor Ant Financial. The OFS size will now inch up to Rs 10,000 crore, which means that Ant Financial will offload shares worth Rs 5,000 crore, sources confirmed.

In the draft red herring prospectus filed by the company, the OFS size was Rs 8,300 crore, and roughly the same amount was being raised via a fresh issue of shares.

“While 50 per cent of the OFS is by Ant Financial, the remaining is by Alibaba, Elevation Capital, SoftBank, and other existing shareholders,” said a source.

  • OFS size to increase to about Rs 10,000 crore from Rs 8,300 crore
  • Ant Financial will offload shares worth Rs 5,000 crore
  • Company eyeing a valuation of $20-22 billion
  • Increasing IPO size won’t require fresh permission
Sources said Paytm’s valuation and price band would be intentionally kept in such a range that these would offer ample opportunities of value creation for new investors as well as leave enough money on the table.


The company is eyeing a valuation of $20-22 billion, sources said. Paytm was valued at $16 billion when it raised funds two years ago.

Paytm has built a multi-stack architecture through the payment options offered by the company — Paytm Wallet, Paytm UPI, Paytm Postpaid (Buy Now, Pay Later), credit cards/debit cards, Paytm PoS, All-in-One QR code, and Soundbox, among others.

Paytm has also decided not to go ahead with its pre-IPO share sale. It had plans to raise as much as $2.2 billion from its share sale, according to its draft prospectus.

Led by founder and Chief Executive Officer Vijay Shekhar Sharma, Paytm has expanded beyond digital payments into banking, credit cards, financial services, and wealth management. It also supports India’s financial payments backbone, the Unified Payments Interface, or UPI.

As of FY21, its revenue from operations stood at Rs 2,800 crore from 114 million annual transacting users and it had facilitated 7.4 billion transactions, including transactions made to merchants via its ecosystem and peer-to-peer payments, according to the DRHP.


Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel
Key stories on business-standard.com are available to premium subscribers only.

Already a premium subscriber?

Subscribe to get an across device (Website, Mobile Web, Iphone, Ipad, and Android Phone applications) access to Premium content, Breaking News alerts, Industry Newsletters, Stock and Corporate news alerts, access to Archives and a lot more.

Read More on

PAYTM

IPOS

INITIAL PUBLIC OFFERINGS

ANT FINANCIAL

MARKETS

NEWS


Most Read

Markets

Companies

Opinion

Latest News

Todays Paper

News you can use