Paytm Gets Nod for Rs. 16,600 Crore IPO By SEBI

Paytm Gets Nod for Rs. 16,600 Crore IPO By SEBI

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News oi-Kuntala Sarkar

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Paytm Gets Nod for Rs. 16,600 Crore IPO By SEBI

Paytm’s parent, One97 Communications has recently received a nod from the Securities and Exchange Board of India’s (SEBI) for Rs. 16,600 crores initial public offering (IPO), according to some news media sources. This IPO was long-awaited by the company. However, SEBI is yet to announce it officially. Now, Paytm will be able to launch its issue after including the observations by the SEBI in its draft red herring prospectus (DRHP). Paytm is targeting to list on the Indian bourses by November 4, on the day of Diwali. The company had filed its draft in July.

Getting a nod for IPO means the company will be listed on the Indian stock markets, and the common equity investors will be able to buy the company shares from there. If the company gets listed by November 4, then the investors will be allowed to invest in Paytm shares.

The firm will seek a valuation of around $20-24 billion for the listing, while earlier Paytm was valued at about $16 billion in the earlier round more than 2 years ago.

Paytm now will be one of the largest in the country’s public market history. It will be able to raise Rs. 8,300 crore via primary share sale and Rs. 8,300 crore via secondary sale, through an offer for sale (OFS).

A previous ET report mentioned, “Earlier this month that Paytm’s IPO has garnered interest from likes of Canada’s CPPIB, US-based asset manager Alkeon Capital as well as funds managed by Morgan Stanley and Goldman Sachs.”

However, in 2012, One97’s planned to raise Rs. 120 crore through an IPO, but later canceled the plan due to market volatility. The company has announced a revenue of Rs. 3,186 crore for FY21, and Rs. 3,540 crore in FY20.

Story first published: Friday, October 22, 2021, 18:50 [IST]

Original news source Credit: www.goodreturns.in



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