Paytm, the leading digital payments and financial services firm will raise around ₹22,000 crore through an initial public offer during the October-December quarter this year according to an industry source. It has received in-principle approval from the company’s board.
The company’s board meeting, which is scheduled for Friday is likely to discuss an enterprise value of over ₹2 lakh crore for the IPO.
According to sources, the board of directors of Paytm has given in-principle approval for the mega IPO planned to be launched in October-December quarter. The company expects to raise around ₹21,000- ₹22,000 crore from the IPO. This will also give some of the existing investors to offload some of their stake.
The board meeting of the company was held on Friday. However, Paytm spokesperson declined to comment when contacted.
This is going to be one of the largest IPOs in India if the company can achieve the target as per its plan.
Paytm claims to be around 30-50 per cent larger than mobile apps in the segment with over 1.4 billion monthly transactions.
The company had reported shrinking of loss by 40 per cent and increase of revenue to ₹3,629 crore on year-on-year basis in the fiscal year 2019-20.
Paytm shareholders include Alibaba’s Ant Group (29.71 per cent), Softbank Vision Fund (19.63 per cent), Saif Partners (18.56 per cent), Vijay Shekhar Sharma (14.67 per cent).
AGH Holding, T Rowe Price and Discovery Capital, Berkshire Hathaway hold less than 10 per cent stake in the company.
Smrutirekha Bhoi