Paytm's Initial Public Offer (IPO) has received approval from the Securities Exchange Board of India (SEBI). After this, it is being speculated that the company can bring its IPO soon. Paytm had applied for the IPO with the Securities Exchange Board of India in July. Founder Vijay Shekhar was seen dancing along with his employees to the famous song 'Apni to jaise te kat jayegi… Paytm plans to raise Rs 16,600 crore through IPO. According to media reports, the company can be listed by mid-November.
Paytm's IPO will be worth a total of 16 thousand 600 crores. If Paytm manages to raise this amount, it will be India's biggest IPO ever. So far this record is in the name of Coal India, which raised more than Rs 15,000 crore through IPO in 2010. Paytm has said that the company plans to raise Rs 8,300 crore through fresh equity and a similar amount through offer-for-sale. Paytm can bring an IPO at Rs 3200 to Rs 3800 according to the current price.
Ant Group holds a 30.33% stake in Paytm's shareholders. Apart from this, Japan's SoftBank Vision Fund (18.73%), Elevation Capital (17.65%), Vijay Shekhar Sharma (14.97%), Alibaba (7.32%) have stakes. AGH Holding, T Roe Prize, Discovery Capital and Berkshire Hathaway also hold the remaining 11%.
Some investors of the company will reduce their stake for offer-for-sale. The investors who sold the stake include Antfin Holding BV, Alibaba.com Singapore E-Commerce Pvt Ltd, Elevation Capital V FII Holdings Ltd, Elevation Capital V Ltd, SAIF III Mauritius Company Ltd, SAIF Partners India IV Ltd, SVF Panther (Cayman) Ltd and BH International Holdings Incorporated.
The company has told that it can also bring a pre IPO placement cell of 2 thousand crores before the IPO. Paytm was asking for a valuation of $ 20 billion for Rs 2 thousand crores, but those who bought the shares called this valuation too expensive.
The company has said in its draft IPO that it cannot guarantee that it will make further profits. The company has made a net loss in the last three years. The organisation has incurred a loss of Rs 2,943 crore in the financial year 2020 and Rs 1,704 crore in 2021.
Many big companies are in line to invest in Paytm. According to media reports, companies like Singapore's GIC, Abu Dhabi Investment Authority, Alken Capital of America and Morgan Stanley can invest in IPO and anchor investment.