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Deepti Sri · · 1 min readReport: Paytm to raise over $1.6b ahead of IPO in November
“One97 Communications, the parent company which owns the Paytm brand, intends to issue fresh equity shares worth 120 billion rupees (US$1.6 billion) for its primary fund raise ahead of its much-awaited initial public offering (IPO), planned around November-end this year,'” Livemint reported.
Details:
- According to the report, Paytm founder Vijay Shekhar Sharma will also be “declassified” from his status as “promoter” of Paytm in order to adhere to the rules set out by the Securities and Exchange Board of India.
- The fresh fundraise could include an issue of new equity shares, along with an “offer for sale” by some existing shareholders of the company.
Context:
- Paytm is reportedly targeting a valuation of roughly US$25 billion to US$30 billion and is looking to raise about US$3 billion in its IPO, potentially making it the largest debut ever in India.
- The development comes after Sharma said Paytm experienced its best performing quarter in Q1 2021, with the Covid-19 pandemic spurring digital payments in the country.
Editing by Collin Furtado and Jaclyn Tiu
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