NEW DELHI: In a big boost to India’s IPO market, two of India’s leading tech enabled companies are one step closer to becoming a publicly listed company. Country’s largest fintech player Paytm has received a green signal from market regulator Sebi to come up with India’s largest IPO (initial public offering) while details of Nykaa’s IPO is now known to all.
One97 Communications (parent company of Paytm) has got Securities and Exchange Board of India’s (Sebi) nod for its Rs 16,600 crore IPO, according to source privy to the development. Paytm is planning for a mid-November listing. While Rs 8,300 crore will be primary share sale, the rest Rs 8,300 crore will be an offer for sale (OFS), where existing investors can sell their shares. Paytm counts the likes of Ant Group, Alibaba, Elevation Capital and SoftBank Vision Fund among its main investors.
With this issue size, Paytm will surpass the state-run enterprise Coal India’s Rs 15,475 crore IPO that so far holds the record for largest public offering in India’s corporate history. According to a senior market analyst, Paytm will debut on the stock exchanges at a valuation north of $20 billion, a significant increase from when it was valued last at $16 billion two years back.
He expects the two IPOs to create a bigger buzz than that of Zomato that got listed in July this year. “Nykaa, being a profitable company, has already generated a lot of buzz among serious investors, be it retail or intuitional. However, it is the sheer size and brand appeal of Paytm that makes it too big to miss,” he said.
Paytm had clocked revenue of Rs 3,186 crore for FY21 as against Rs 3,540 crore in the previous year. What is interesting to the investor community is that the company had narrowed losses to Rs 1,701 crore during the same period from Rs 2,942 crore in the previous year.
Coming to Nykaa, the online to offline marketplace for beauty products has decided to launch its IPO on October 28 and close the offer on November 1. It plans to raise Rs 5,351.92 crore through its public issue at the upper price band. The price band has been fixed at Rs 1,085-1,125 a share, giving it a valuation of as much as $7.11 billion. Investors can bid a minimum of 12 shares and in multiples of 12 shares thereafter. Nykaa’s IPO comprises a fresh issue of Rs 630 crore and an offer for sale of 4.197 cr shares by the promoters and investors.
Paytm IPO
Rs 16,600 cr Estimated IPO size
Rs 8,300 cr Likely via primary share sale
Rs 8,300 cr From offer for sale
Nykaa IPO
Rs 5,351.92 cr The firm aims to raise
Rs 1,085-1,125 Price fixed for each share
Rs 630 cr Worth of fresh issue