Digital payments company Paytm plans to raise over $1 billion with anchor investors ahead of the launch of its blockbuster initial public offer (IPO) next week. The IPO will open on November 8 and will be available for subscription till November 10.
The IPO will comprise issuance of fresh equity shares worth $1.1 billion ( ₹8,300 crore) and Offer for Sale (OFS) by existing shareholders to the tune of $1.3 billion ( ₹10,000 crore).
The $2.4 billion ( ₹18,300 crore) offer will be the biggest in the country after Coal India's IPO in 2010 wherein the state-owned had garnered $2.03 billion ( ₹15,200 crore).
Here are the key points about Paytm IPO:
• The price band for the IPO will be between ₹2,080-2,150 per share, implying an enterprise value of $19.3 to $19.9 billion, according to Sudarshan Ramakrishna, Managing Director of Goldman Sachs India Securities.
• The company skipped pre-IPO funding round to expedite launch of the initial share sale.
• Through the OFS, Managing Director and CEO of Paytm's parent company One97 Vijay Shekhar Sharma will offload shares worth up to $53.94 million ( ₹402.65 crore) while Antfin (Netherlands) Holdings will sell shares to the tune of $643 million ( ₹4,704.43 crore).
{{/usCountry}}• Through the OFS, Managing Director and CEO of Paytm's parent company One97 Vijay Shekhar Sharma will offload shares worth up to $53.94 million ( ₹402.65 crore) while Antfin (Netherlands) Holdings will sell shares to the tune of $643 million ( ₹4,704.43 crore).
{{/usCountry}}• Paytm received approval from the capital markets regulator for its IPO last month. It was already been cleared by by the Securities and Exchanges Board.
• The fintech platform is backed by Ant Group, SoftBank's Vision Fund and Berkshire Hathaway. Ant Group is Paytm's largest shareholder with nearly 30 per cent stake.
• Paytm's revenue from operations increased by 62 per cent in the first quarter of financial year 2021-22.
• In financial year 2021, the company reported a Gross Merchandise Value of $53 billion ( ₹4 lakh crore).
• In the first quarter of FY'22, the company's payments and financial services revenue alone stood at ₹689.4 crore contributing to 77 per cent of its total revenue. The company incurred a loss of ₹2.9 crore in the quarter ended June 2021.
• From starting out as a digital wallet to simplify mobile recharging, Paytm rapidly grew into an all-round quick payment option.
• The 2016 demonetisation played a role in pushing merchants to accept payments digitally and led to phenomenal growth of Paytm.