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Paytm gets SEBI nod for ₹16,600 cr IPO

The company is also expected to file its red herring prospectus with the regulator, over the next week

2 min read . Updated: 22 Oct 2021, 06:46 PM IST Tarush Bhalla, Swaraj Singh Dhanjal

While Paytm was looking to list on the Indian exchanges by early-November, timing its market debut with Diwali, it could now potentially look at a listing timeline by mid-November

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Bengaluru/ Mumbai: Noida-based digital payments company, One97 Communications Ltd. which owns brand Paytm, has received approval of market regulator the Securities and Exchange Board of India (SEBI) for its ₹16,600 crore (roughly $2.2 billion) initial public offering (IPO), according to three individuals aware of the discussion.

While Paytm was looking to list on the Indian exchanges by early-November, timing its market debut with Diwali, it could now potentially look at a listing timeline by mid-November, one of the individuals quoted above confirmed to Mint.

“The company was hoping to list on the Indian exchanges by Diwali. However, it might look at a timeline by mid-November to make its public debut. The company is still deliberating and nothing is finalised as of yet," said one of the individuals aware of the discussion.

The company is also expected to file its red herring prospectus with the regulator, over the next week, a second individual quoted above said.

Earlier in July, India’s second most valued startup, Paytm, filed its draft prospectus with SEBI, proposing to sell new shares worth ₹8,300 crore. Existing shareholders will sell stocks worth another ₹8,300 crore through the IPO, Paytm said in its draft share sale documents.

The company plans to use ₹4,300 crore of the fresh issue to grow its existing business lines and acquire new merchants and customers, it said.

Mint had earlier reported citing sources that the company was seeking a valuation of around $20 billion to $22 billion based on initial investor feedback.

It was in active talks with State-backed wealth investors Abu Dhabi Investment Authority and Singapore’s GIC Pte to participate in the IPO. Global financial firms such as BlackRock Inc. and Nomura Holdings Inc. were also in discussions to bid for Paytm's IPO, Mint had reported earlier this month.

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