The Paytm PayTM IPO can still raise at least 1,000 lei &

 Paytm may increase the size of the offer to sell to Paytm if existing investors sell the shares. One97 Communications expects SEBI nod to increase size of Paytm IPO in coming days

MUMBAI: Paytm's Rs 16,600 million initial public offering (IPO), considered one of the largest in India, is expected to increase the volume of the offering by around Rs 1,000-2,000 million, people said on the issue. gave information. This would largely be done through a secondary sale of shares - technically known as a sale offer - in which existing investors would sell the shares.

The development comes at a time when Paytm's mother One97 Communications, which owns Paytm and its fintech branches, is expected to receive approval from the capital markets regulator, Securities and Exchange Board of India, in the coming days. .

Paytm IPO can still raise at least Rs 1,000 or Rs 2,000.

Paytm IPO can still raise at least Rs 1,000 or Rs 2,000.

Sources said Paytm may also increase the primary component by issuing new shares. "The move to increase the offer size comes after receiving comments from SEBI which are modest in nature. Due to high interest in Startup IPOs, the company received a call to increase the offer size", said information on the subject. said one of the people.

"They (Paytm) are targeting to be listed by the second week of November," he said. "They (Paytm) have decided to increase the quantity supplied by at least Rs 1,000 million, but are in the process of negotiating further growth, and the IPO (now) could be around Rs 18,000 million." his plans. this is.'

Paytm IPO may still raise at least Rs 1,000 or Rs 2,000 million Paytm IPO may still raise at least Rs 1,000 or Rs 2,000 Fast News, Fast News India, Hindi Blogspot, Hindi News Blog

In its draft prospectus, Paytm said it would raise ₹16,600 million, which would be divided equally between the fresh issue of shares and the secondary sale. In a secondary sale, existing investors sell a package of shares, and the money does not go into the company's treasury. DRHP has named founder Vijay Shekhar Sharma, Japan's SoftBank Group, Ant Group and Elevation Capital as selling shareholders, all of whom will reduce part of their stake in SFO.

A Paytm spokesperson declined to comment on the increase in the size of its IPO. Considering the size of Paytm and its position in the country's fintech segment, the IPO is expected to be a significant event for the Indian startup ecosystem, as the Zomato food delivery application has been listed for over Rs 9,000 million in July. . According to Paytm's DRHP, 75% of its public offering will be allocated to Qualified Institutional Buyers (QIBs), while 15% is for non-institutional investors and the rest for retail investors. Up to 60% of the QIB share can be allotted to anchor investors.

ET reported earlier this month that Paytm's IPO attracted interest from Canadian CPPIB, US asset manager Alcain Capital and funds managed by Morgan Stanley and Goldman Sachs. The new investors join the list of bidders under discussion to invest in Paytm's anchor investment as well as its IPO. Bloomberg News reported on Thursday that the company's pre-IPO placement is unlikely to raise funds.

 

According to some sources, Paytm is looking for a valuation of $20-22 billion in the IPO. The company was valued at around $16 billion when it last raised funds two years ago. "Some global investors have expressed interest in the higher valuation, but the company has indicated to investors that it could satisfy anywhere between $20 billion and $22 billion," said a person familiar with the discussion. Other sources said the response on the issue of the IPO so far has been low, reducing its valuation.

SEBI's application for Paytm IPO comes at a time when several new age internet companies have either listed on stock exchanges or initiated the process in this regard. Indian-origin SaaS startup Freshworks Inc. has decided to launch its public market on Nasdaq, while Nykaa will launch its IPO on October 28. Policybazaar, MobiKwik, Pine Labs and many more IPOs in Delhi are under development.

DRHP said Paytm will use most of its IPO revenue to acquire more merchants and retain customers, while strengthening its business in areas such as credit, insurance and e-commerce. The company reported a consolidated loss of Rs 1,701 million