Paytm’s IPO is one of the most awaited public offerings of the calendar year. The DRHP has been filed after the company received a nod from board members and existing shareholders to go ahead with the IPO.
ajor fintech platform Paytm’s parent company One97 Communications has filed a draft red herring prospectus (DRHP) with market regulator Securities and Exchange Board of India (Sebi). It has sought the market regulator's approval for Paytm’s initial public offering to raise Rs 16,600 crore.
Paytm’s IPO is one of the most awaited public offerings of the calendar year. The DRHP has been filed after the company received a nod from board members and existing shareholders to go ahead with the IPO.
KEY DETAILS ABOUT PAYTM IPO
The payments firm will issue fresh shares worth Rs 8,300 crore with a face value of Rs 1 each, according to the DRHP.
The rest 8,300 crore will be through an offer for sale, involving offloading of shared by existing shareholders of the company. In addition, Paytm may consider a pre-IPO placement of Rs 2,000 crore.
In its IPO document, Paytm said it is a professionally managed company with no identifiable promoter. The company plans to use Rs 4,300 crore for growth-related acquisitions and Rs 2,000 crore for investing in new business initiatives.
The firm did not specify how much it intends to spend on general corporate purposes. It said the amount will be finalised after the offer price is determined and updated in the prospectus.
Paytm, however, made it clear that the amount utilised for general corporate purposes will not exceed 25 per cent of the net proceeds.
This will be India’s biggest public issue till date, surpassing the Rs 15,000 crore raised by Coal India over a decade ago.
Some shareholders who are likely to sell a part of their stake as part of the book building process are founder and CEO Vijay Shekhar Sharma, Antfin Holding, Alibaba Singapore e-commerce, Elevation Capital, SAIF-III Mauritius/SAIF Partners India and BH International Holdings.
At least 75 per cent of the net offer has been reserved for qualified institutional buyers (QIBs). In total, 15 per cent of the net offer shall be available for allocation on a proportionate basis to non-institutional investors and the remaining 10 per cent will be reserved for retail investors.
While the company is likely to reserve a portion of the offer for existing employees, the details have not been mentioned in the DRHP.
The company has appointed Morgan Stanley India Company, Goldman Sachs (India), Securities, Axis Capital as joint global coordinators for the public issue.
Meanwhile, ICICI Securities, JP Morgan India, Citigroup Global Markets India and HDFC Bank have also been appointed as book running lead managers (BRLMs). Link Intime India has been appointed as the registrar of the issue.
Article Source: https://www.indiatoday.in/
0 Comments