NEW DELHI: Fintech company Paytm’s share sale plan gets bigger as the Noida-based company is now aiming to raise Rs 18,300 crore from its Initial Public Offer (IPO), making it the biggest IPO in India ever, sources close to development told the New Indian Express.
Earlier, the company had planned to raise Rs 16,600 crore from its IPO, but higher demand from investors made it increase the issue size. According to the sources, the IPO may open for subscription post Diwali between November 8 and November 10.
The company is targeting a price band of Rs 2,080-2,150, and is looking for a valuation of $20 billion, said sources. “While the company could have gone for a higher band, it chose the current price band to leave enough money on the table for new investors and to create ample opportunity of value creation,” the source close to the development said.
The company plans to raise Rs 8,300 crore through fresh issue of equities while Rs 10,000 crore would be used to give exits to existing shareholders. Chinese Group Ant Financial holds 29.6% in Paytm, followed by 17.2% by SAIF Partners, 9.6% by founder Vijay Shekhar and 7.2% by China-based Alibaba.
According to the red herring prospectus (RHP) of the IPO, a part of the proceed would go towards growing and strengthening Paytm’s ecosystem, including through acquisition, and towards investing in new business initiatives, acquisitions and strategic partnerships Paytm’s total user base has increased to 337 million registered consumers and over 21.8 million registered merchants, as of June 30, 2021.
For the quarter-ended June 2021, the company’s revenue grew by 46% to Rs 948 crore compared to Rs 6,49 crore in the same quarter last year. Paytm’s losses stood at Rs 382 crore for the three months ended June 2021.