Paytm aims to launch Rs 16,600 crore IPO by October
Digital payments and financial services firm Paytm is looking to hit the market with its Rs 16,600 crore IPO at the earliest and by October, sources said on Monday. The company had filed a draft letter for its initial share sale with markets regulator SEBI on July 15. It expects a response from the capital market watcher by mid-September, after which it plans to go ahead with the listing at the earliest.
“It is believed that it takes two months for SEBI to come back on the draft red herring prospectus. The company is looking forward to it. Once the documents are received, Paytm will file for the IPO.
A source tracking the developments told PTI, “The process is subject to regulatory approvals. If it goes by the expected timeline, the IPO should be implemented by October.
Email queries sent to Paytm did not elicit any response.
According to the draft document, the company plans to raise Rs 8,300 crore through fresh equity issuance and Rs 8,300 crore through offer for sale.
Paytm Founder, Managing Director and CEO Vijay Shekhar Sharma and Alibaba Group companies will reduce some of their stake in the proposed sale proposal.
Alibaba Group firm Antfin (Netherlands) Holding BV will sell at least 5 per cent stake to bring down its stake below 25 per cent to comply with regulatory requirements, according to another source.
According to the document, investors who sold the stake include Antfin (Netherlands) Holding BV (which holds 29.6 per cent), Alibaba.com Singapore E-Commerce Pvt Ltd (7.2 per cent) and Elevation Capital V FII Holdings Ltd (0.7 per cent). .
In addition, Elevation Capital V Limited (which holds 0.6 percent stake), SAIF III Mauritius Company Limited (12.1 percent), SAIF Partners India IV Limited (5.1 percent), SVF Panther (Cayman) Limited (1.3 percent) and BH International Holdings ( 2.8 per cent) will also sell stake.
The company proposes to use Rs 4,300 crore to grow and strengthen the Paytm ecosystem, including acquisition of consumers and merchants and giving them greater access to technology and financial services.
Paytm plans to earmark Rs 2,000 crore for business initiatives, acquisitions and strategic partnerships and up to 25 per cent of the total funds raised through IPOs for general corporate purposes.
According to the document, Paytm’s merchant base grew from 1.12 crore in March 2019 to 2.11 crore as on March 31, 2021, and the gross merchant value almost doubled to over Rs 4 lakh crore in FY19 from 2.29 crore in FY19. Lakh crore was Rs.
The company has reported a loss of Rs 1,704 crore in FY21 as against Rs 2,943.3 crore in FY10 and Rs 4,235.5 crore in FY19.
Total income declined to Rs 3,186.8 crore in FY’21 from Rs 3,540.7 crore in FY’20.
Paytm has reported negative cash flow of Rs 222.1 crore in FY21 mainly due to operating losses and additional working capital requirement.
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