New Delhi: Known as the country’s largest initial public offering, Paytm is considering scrapping a proposed Rs 2,000 crore ($268 million) share sale ahead of its issue, according to a Bloomberg report.
What is the latest update?
According to Bloomberg sources, the firm was considering a valuation of more than $20 billion, according to feedback from early investors, while advisors on the deal recommended a lower price. According to unicorn tracker CB Insights, the company was valued at $16 billion.
However, a Moneycontrol report suggests that the company has decided to skip the pre-IPO funding round. According to the report, it aims to meet its listing target in the month of November, just after Diwali. As SEBI’s nod is awaited, the payments and financial services company is looking to do away with an additional round and not because of the difference in listing valuation, according to the online publication.
Also called One97 Communications Limited, Paytm intended to tap the IPO market, which has seen blockbuster listings this year. The company had reported a decline of 10 per cent in revenue during the year ended March 2021. A final decision is still pending, and as per the report, the company may still consider a pre-IPO sale at a lower valuation. Some said regulators are expected to clear the listing in the coming days.
Banks including Morgan Stanley, Goldman Sachs Group Inc, Citigroup Inc and ICICI Securities Ltd are considering a share sale. In the draft red herring prospectus filed with the Securities and Exchange Board of India, the company informed that it may consider pre-IPO placements of up to Rs 20 billion.
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