PremiumVijay Shekhar Sharma-led Paytm is expected to hit the exchanges by the end of this month and is planning to skip the pre-IPO share sale rounds to fast-track listing
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Market regulator Sebi recently gave the green light to the initial share sale of Paytm, clearing the way for one of the biggest IPOs seen in the Indian market. The issue will see issuance of fresh equity shares, as well as CEO Vijay Shekhar Sharma and other promoters diluting their stake. Joining in on the revelry, billionaire Harsh Goenka shared a video showing how joyed Sharma might have been to receive the watchdog's approval for floating the IPO.
In a recent Twitter post, Goenka shared an old video of Sharma busting a move on the famous ‘Apni To Jaise Taise’ from Amitabh Bachchan's Laawaris, and even tagged the Paytm founder. The chairman of RPG group captioned his post: “Scenes at Paytm office after SEBI approves one of India’s largest IPOs."
Securities and Exchange Board of India (Sebi), on Friday, gave its approval to digital financial services major Paytm to raise ₹16,600 crore through initial public offer (IPO). The Vijay Shekhar Sharma-led company is expected to hit the exchanges by the end of this month and is planning to skip the pre-IPO share sale rounds to fast-track listing.
According to the draft IPO documents, the company plans to raise ₹8,300 crore through fresh issue of equity shares and another ₹8,300 crore through the offer-for-sale (OFS) route. Under the proposed OFS, Sharma and Alibaba group firms will dilute some of their stake in the proposed offer-for-sale.
Alibaba group firm Antfin (Netherlands) Holding BV is expected to sell at least 5 per cent stake to bring its shareholding below 25 per cent to comply with regulatory requirements, according to a source.
As per the documents, investors selling stake include Antfin (Netherlands) Holding BV (which has a 29.6 per cent stake), Alibaba.Com Singapore E-Commerce Private Ltd (7.2 per cent) and Elevation Capital V FII Holdings Ltd (0.7 per cent).
Moreover, Elevation Capital V Ltd (which has a 0.6 per cent stake), SAIF III Mauritius Company Ltd (12.1 per cent), SAIF Partners India IV Ltd (5.1 per cent), SVF Panther (Cayman) Ltd (1.3 per cent) and BH International Holdings (2.8 per cent) will also sell stake.
The proposed IPO, if successful, would be the largest such issue seen in the country. Coal India's ₹15,200-crore initial public offer (IPO) in 2010 is the country's largest one till date. Paytm is eyeing a valuation of ₹1.47-1.78 lakh crore through this issue.
The company has proposed to use ₹4,300 crore for growing and strengthening the Paytm ecosystem, including through acquisition of consumers and merchants and providing them with greater access to technology and financial services.
Paytm plans to earmark ₹2,000 crore for business initiatives, acquisitions and strategic partnerships and up to 25 per cent of the total fund raised through the IPO for general corporate purposes.
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