One97 Communications is all set for the initial public offering of its fintech subsidiary Paytm, which aims to raise as much as 183 billion rupees (US$2.44 billion).
Paytm’s IPO will include a fresh issue of shares worth US$1 billion and a share sale from existing stockholders of up to US$1.3 billion. The offer will be available between November 8 and November 10.
Photo credit: Quartz India
The fintech giant has set the price of US$28 to US$28.7 per equity share.
See also: Paytm IPO: 8 key points about India’s largest stock market debut
Ahead of the long-awaited listing – considered India’s biggest till date – founder and CEO Vijay Shekhar Sharma and other Paytm executives gave an overview of the company and its recent performance and plans.
Tech in Asia looks at some key points from Paytm’s presentation for the IPO.
Strong business momentum
Paytm noted that its business – inclusive of the payments and financial business and the commerce and cloud services – grew by 62% in the first quarter of the financial year ending (FYE) March 2022.
Image credit: Paytm
Even as payments and financial services drove revenue during the quarter, its commerce and cloud services business too saw an uptick of 66%. Contribution margin increased by nearly 3x in Q1 FYE 2022 from the same quarter last year.
Rising expenses
Even as its revenue soared, Paytm’s expenses have also grown steadily. Total expenses for the company in the first quarter stood at US$175 million, up by 40.6% from the same quarter in the previous fiscal year.
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