According to a source, digital payments firm Paytm is expected to seek shareholders’ nod to raise Rs 16,600 crore through an initial share sale, giving it a valuation of over Rs 1.78 lakh crore.
Paytm’s extraordinary general meeting is scheduled to be held on July 12, in which the company may seek approval to raise up to Rs 12,000 crore by issuing fresh equity.
According to the source, Rs 4,600 crore is expected to be raised from the sale of equity shares by existing and eligible shareholders.
“The company may seek shareholders’ approval to raise around Rs 16,600 crore through IPO. Existing shareholders, former and current employees have also opted to sell their shares in the process.
“The valuation of the firm is likely to be in the range of Rs 1.78 lakh crore to Rs 2.2 lakh crore,” the source said. With this valuation range, the company is expected to be among the top 10 listed financial services companies.
Paytm’s shareholders include Alibaba’s Ant Group (29.71 per cent), SoftBank Vision Fund (19.63 per cent), Saif Partners (18.56 per cent) and Vijay Shekhar Sharma (14.67 per cent). AGH Holding, T Roe Price, Discovery Capital and Berkshire Hathaway hold less than 10 per cent each in the company.
The company is expected to file documents for the initial public offer (IPO) next week.