Paytm has received SEBI approval for the largest IPO in India in at least a decade
The Securities and Exchange Board of India (SEBI) has approved Paytm’s parent company One97 Communications’ much-anticipated Rs 16,600 crore initial public offering (IPO), according to sources.
SEBI is anticipated to make an official announcement soon, according to sources. Paytm can now launch its IPO with Sebi’s clearance, as long as it incorporates any comments the regulator may have made on its draught red herring prospectus (DRHP). By November 4, the company hopes to be listed on Indian stock exchanges, coinciding with the Diwali festival.
The fintech startup‘s mega-IPO would raise Rs 8,300 crore through primary share sale and Rs 8,300 crore through secondary share sale via an offer for sale, making it one of the largest in India’s public market history (OFS).
The CPPIB of Canada, Alkeon Capital of the United States, and funds run by Morgan Stanley and Goldman Sachs have all expressed interest in Paytm’s IPO. The new investors join a group of investors in talks to invest in Paytm’s anchor investment as well as its first public offering (IPO). A pre-IPO placement is unlikely to raise capital for the company.
For its IPO, the company is expected to seek a valuation of $20-24 billion. In its previous financing, over two years ago, the company was valued at roughly $16 billion. The decision comes at a time when a wave of new age online businesses, including Nykaa, Policybazaar, and Zomato, have begun the process of becoming listed.
Ant Financial, Alibaba, Elevation Capital, and SoftBank Vision Fund are among the investors of One97 Communications, which was founded by Vijay Shekhar Sharma almost two decades ago.