Digital payments startup Paytm has filed a draft red herring prospectus (DRHP) with the market regulator for its proposed Rs 16,600 crore initial public offering (IPO). The document showed that the company is aiming to raise Rs 8,300 crore through fresh equity and another Rs 8,300 crore through offer-for-sale. This will be the country’s largest-ever initial share sale. At present, the record is held by state-owned Coal India, which raised Rs 15,000 crore in 2010.
The offer-for-sale proposes equity sale by Paytm’s founder Vijay Shekhar Sharma, Ant Financial, Alibaba.com, Elevation Capital, Saif III Mauritius Company, SVF Panther (Cayman) and BH International Holdings, among others.
Net proceeds will be used towards funding the growth of Paytm ecosystem, including the acquisition of consumers and merchants over the next five financial years, according to the DRHP.
Process
Shares of the company are proposed to be listed on leading stock exchanges BSE and NSE both. ICICI Securities, JPMorgan, Citi, HDFC Bank, Morgan Stanley, Goldman Sachs, Axis Capital are the booking running managers for the IPO, while LINK Intime is the registrar to the offer.
Owned by One97 Communications Ltd, the Noida-based company added that the price band will be decided by the company and the investor selling shareholders, in consultation with joint global co-ordinators and book running lead managers.
IPO frenzy
The ongoing IPO of online food delivery platform startup Zomato got oversubscribed more than 8 times on the final day of the bidding process on Friday till 12.15 pm (IST). The public offer has received bids for 5,98,95,82,170 shares so far against 71,92,33,522 shares on offer, stock exchange data showed.
Published: July 16, 2021, 12:38 IST
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