Paytm, a digital payments startup based in Noida, is experiencing significant demand for its initial public offering (IPO), with sovereign wealth funds and global institutional investors valuing the Noida-based firm at $20-$22 billion, according to MoneyControl.
The business submitted draught papers for its IPO with the Securities and Exchange Board of India (Sebi) in July, with a target valuation of Rs 16,600 crore ($2.2 billion). Paytm is anticipated to receive market regulator permission this week and plans to conduct its initial public offering (IPO) before Diwali, according to the newspaper, which cited sources.
A sovereign wealth fund has made an offer to acquire over $500 million worth of shares in the IPO, according to the firm.
Paytm, which is backed by Ant Group and SoftBank, reduced its operating loss to Rs 1,655 crore in the financial year ended March 2021, down from Rs 2,468 crore the previous year.
The business plans to raise Rs 8,300 crore by the issuing of new equity shares and another Rs 8,300 crore through an offer-for-sale, according to its draught red herring prospectus.
The company’s founder, managing director, and chief executive officer, Vijay Shekhar Sharma, as well as Alibaba Group businesses, are among those who would reduce some of their interest in the proposed offer-for-sale.
After the IPO, Sharma will be active in the company’s administration and affairs, although his involvement will be restricted to his professional capacity as MD and CEO.
The board of directors will have authority over major decisions such as debt financing, the formation and operation of subsidiaries, the approval of a business plan, inter-company financial transactions exceeding a certain monetary threshold, and the appointment and removal of key management personnel.