The increased share will come under the all-off offer-for-sale (OFS) component, in which existing shareholders will sell more of their shares.
The size of the primary offering will remain unchanged at Rs 8,300 crore, while the size of the secondary sale will now stand at Rs 10,000 crore.
The biggest IPO ever in the history of Indian capital markets has been that of Coal India (CIL), which raised Rs 15,475 crore in 2010.
Paytm’s issue is expected to hit the market next month, with the shares of One97 Communications (Paytm’s parent company) listed on both the Bombay Stock Exchange and the National Stock Exchange.
Even before the increase in size, Paytm’s offering was the largest in India. According to sources, Paytm has decided to increase the issue size after receiving feedback that there is enough appetite for the company’s shares at the right price.
About half of the offer for sale is by Ant Financial and the rest by Alibaba, Elevation Capital. softbank and other existing shareholders. Investment bankers are understood to have advised the company to offer shares in the price band to enable price discovery.
The company has said that it has made the contribution margin positive. Contribution margin indicates the profits made by the company from each product or service by subtracting the variable component of the company’s costs. This improved from a loss of Rs 1,998 crore in FY19 to a profit of Rs 362 crore in FY21.
Food delivery platform Zomato is currently priced at Rs 1,06,302 lakh crore. Based on its proposed IPO, Paytm is valued at around $20 billion or Rs 1.5 lakh crore.
Paytm is establishing itself as a multi-platform payment service provider through e-wallet unified payment interface (UPI) platforms, postpaid, credit cards, point-of-sales terminals and all-in-one QR codes. Earlier this year, BillDesk, which processes payments for e-commerce transactions, was bought by process for $4.7 billion.
In its offer document, Paytm has quoted redseersaid it has a 40% share in the customer-to-merchant mobile payments market. In case of customer-to-merchant e-wallet transactions, its share is more than 65-70%. Paytm Payments Bank, a joint venture between Vijay Shekhar Sharma and One97 Communications, has issued around 9 million FASTags, with a market share of 28%.
.