The IPO of digital payment company Paytm is expected to come in November this year. It was believed that this IPO would be more than 20,000 crores. But now the company has submitted the mandatory documents (DHRP) related to bringing the IPO with SEBI and after this the speculation related to the size of the IPO has come to an end.
According to the documents submitted with SEBI, the IPO of Paytm will be Rs 16,600 crore. Earlier Bloomberg had reported that the company plans to raise Rs 21,800 crore from the IPO.
This IPO of Vijay Shekhar Sharma’s Paytm will be the biggest share market debut in the country so far. Earlier, state-owned Coal India had raised Rs 15,000 crore through IPO.
Paytm aims to raise its market valuation to $25-30 billion (about Rs 1,815 to Rs 2,180 billion) from this IPO. Paytm has investments by Vijay Shekhar Sharma, SoftBank Vision Fund and Alibaba’s Ant Group.
Shares in Paytm’s IPO will be kept for ‘offer for sale’. Also, the company will issue new shares up to Rs 8,300 crore. According to SEBI rules, any listed company has to issue 10% of its IPO within 2 years and 25% of the shares within 5 years.
Alibaba’s Ant Group holds 29.71% in Paytm, 19.63% by SoftBank Vision Fund, 18.56% by SAIF Partners and 14.67% by Vijay Shekhar Sharma. Apart from this, AGH Holding, T. Rowe Price & Discovery Capital and Berkshire Hathaway also have investments.
Vijay Shekhar Sharma has done the whole brain behind Paytm and bringing it to this point. But now he will not be recognized as the promoter of Paytm. According to the new rules of SEBI, the promoter of any listed company should have at least 20% of the capital after the IPO. While Sharma currently holds 14.8% stake in the company.
The valuation of Paytm may be in billions of rupees. But the company still remains in constant loss. The company’s loss in 2020-21 has been Rs 1,701 crore, although it has decreased compared to 2019-20. The company’s loss in 2019-20 was Rs 2,942 crore.
Starting with a mobile wallet service, Paytm has emerged as a major fintech company in recent years. Now it works as a payment banking, credit card, financial services, wealth management and digital payment company. Apart from this, the company has also recently forayed into mobile gaming.