Paytm files DRHP for Rs 16,600-crore IPO

Digital payments firm Paytm has filed a draft red herring prospectus (DRHP) with Securities & Exchange Board of India (Sebi) for an initial public offering (IPO) of up to Rs 16,600 crore.

The issue size of IPO is Rs 16,600 crore.The share sale consists of a fresh issue and an offer for sale (OFS) of up to Rs 8,300 crore each, draft papers submitted to the market regulator Sebi showed on Friday.

The Vijay Shekhar Sharma-led company plans to make its market debut in India around November this year.

The firm's major shareholders include Alibaba's Ant Group (29.71 per cent), Softbank Vision Fund (19.63 per cent), and Saif Partners (18.56 per cent). Vijay Shekhar Sharma holds a 14.67 per cent stake in the company. AGH Holding, T Rowe Price and Discovery Capital, Berkshire Hathaway are also shareholders in the company.

Paytm is targeting a valuation of around $25 billion to $30 billion from the IPO.

The share sale will include a mix of new and existing shares to meet regulatory obligations in India. According to market regulator Sebi's norms, 10% of shares are floated within two years and 25% within five years.