Paytm, earlier known as One97 Communications, has filed draft papers for an initial public offering (IPO) of up to Rs 16,600 crore, the Sebi website showed on Friday. This development comes just 2 days after the opening of Zomato IPO, which has paved the way for other home-grown Indian unicorn companies to go public. Paytm is backed by China’s Alibaba and Ant Group, Japan’s SoftBank and Warren Buffett-owned Berkshire Hathaway, among others.
The Paytm IPO will be India’s biggest public issue, surpassing that of Coal India, which had raised Rs 15,000 crore over a decade ago.
The Paytm IPO will include an issue of new shares worth Rs 8,300 crore and an offer for sale worth Rs 8,300 crore, the digital payments company said in its its draft red herring prospectus (DRHP) or offer document filed with the Securities and Exchange Board of India.
A draft red herring prospectus (DRHP) or offer document marks the beginning of the IPO process. It contains details about the company, promoters and the IPO, based on which the market regulator SEBI will give its nod to the listing.
The Noida-based company owned by One97 Communications will use the IPO proceeds to strengthen its payment ecosystem and for new business initiatives and acquisitions.
One97 was founded by Vijay Shekhar Sharma in 2000. It began as a service provider, and has evolved over the years to become India’s online mobile payments platform.
JPMorgan Chase, Morgan Stanley, ICICI Securities, Goldman Sachs, Axis Capital, Citi and HDFC Bank are the booking running managers for the Paytm IPO.
Meanwhile, Zomato’s Rs 9,375 crore IPO will close for bidding at 5 pm today, i.e. July 16.