Paytm can launch its Initial Public Offering (IPO) within the coming few days. Markets regulatory body SEBI has given its nod to Paytm to launch an IPO of Rs 16,600 crore.
Paytm is expected to hit the stock market by the end of this month and is planning to fast-track listing by skipping the pre-IPO share sale round.
If this IPO of Paytm is successful, then it will be the biggest IPO of its kind to date.
According to information received, Coal India's initial public offering (IPO) of Rs 15,200 crore in 2010 is the biggest ever in the country.
Paytm is eyeing a valuation of Rs 1.47-1.78 lakh crore. It has said in its draft prospectus that it plans to sell an equal number of new and existing shares.
Paytm has the largest number of customers in the merchant-payments market. It has over 20 million merchant partners in its network. According to the company, its customers do transactions worth 1.4 billion rupees every month.
According to the draft IPO, the company plans to raise Rs 8,300 crore through fresh issue of equity shares and Rs 8,300 crore through an offer for sale.
PayPal founder, managing director and chief executive Vijay Shekhar Sharma and Alibaba group companies will also sell some of their stake in the proposed sale offer.
Alibaba Group firm Antfin (Netherlands) Holding is expected to sell a 5 per cent stake to reduce its stake by 25 per cent to meet regulatory requirements.
According to the documents, the investors who sold the stake include Antfin (Netherlands) Holding (29.6 per cent stake), Alibaba.com Singapore E-Commerce Pvt Ltd (7.2 per cent stake) and Elevation Capital v FII Holdings Ltd (0.7 per cent stake).
In addition, Elevation Capital V Limited (0.6 per cent stake), SAIF III Mauritius Company Limited (12.1 per cent stake), SAIF Partners India IV Limited (5.1 per cent stake), SVF Panther (Cayman) Limited (1.3 per cent stake) and BH International Holdings (2.8 per cent stake) will also sell its stake.