Paytm IPO sees demand at a valuation of USD 20-22 billion from foreign investors
The company had filed draft papers with the Securities and Exchange Board of India (Sebi) for its IPO in July and is looking to raise Rs 16,600 crore (USD 2.2 billion)
Paytm, the digital payments firm, is seeing strong demand for its initial public offering (IPO) from sovereign wealth funds and foreign institutional investors valuing the Noida-headquartered company at USD 20-USD 22 billion, MoneyControl reported.
The company had filed draft papers with the Securities and Exchange Board of India (Sebi) for its IPO in July and is looking to raise Rs 16,600 crore (USD 2.2 billion). Paytm is expected to get the market regulator's approval this week and is looking to launch the IPO before Diwali, the report said, citing sources.
The company has received an offer from a sovereign wealth fund to buy over USD 500 million of shares in the IPO, it said. Paytm, which counts Ant Group and SoftBank among its backers, narrowed its operating loss to INR 1,655 crore in the financial year ending March 2021 from INR 2,468 crore a year ago.
The company's draft red herring prospectus is looking to raise INR 8,300 crore through issuance of fresh equity shares and another INR 8,300 crore through offer-for-sale. Vijay Shekhar Sharma, the company's founder, managing director, chief executive officer, and Alibaba Group firms are among those investors who will dilute some of their stake in the proposed offer-for-sale.
Sharma will be involved in the management and affairs of the company after the listing, but his role will be limited to his professional capacity as MD and CEO. The company's board will have the power to take important decisions, including raising debt, creating and operating subsidiaries, approval of the business plan, inter-company financial transactions above a certain monetary threshold, and appoint and remove the critical management team.
