Paytm is bringing the Biggest Initial Public Offering Ever

Paytm founder Vijay Shekhar was seen dancing along with his employees to the famous song 'Apni to jaise te kat jayegi.
Image Credit: DB
Image Credit: DB

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.

How much will Paytm raise?

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.

Where will the company use this money?

  • The company has said that the company will use Rs 4,300 crore out of the money raised through the IPO to strengthen its payment ecosystem. The com. will provide more facilities to its merchants and customers on the technology and financial services.
  • The company will use Rs 2,000 crore for new business initiatives and strategic partnerships.
  • The rest of the amount will be used for general corporate purposes.
Image Credit: TOI
Image Credit: TOI

Whose stake in Paytm now?

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 will reduce their stake for offer-for-sale

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.

Paytm can bring pre IPO placement of 2 thousand crores

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.

Image Credit: News18
Image Credit: News18

Paytm is continuously running at a loss

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.

Which big companies can invest in Paytm?

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.

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