Paytm eyes $2.3 billion via IPO in domestic market

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Vijay Sekhar Sharma-led One97 Communications Ltd, the parent of payments firm Paytm, plans to file a draft prospectus on July 12 to raise $2.3 billion through an initial public offering (IPO) in the domestic stock market, according to a Reuters report.</p>
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The final decision on the matter will be taken at an extraordinary general meeting (EGM) on July 12.</p>
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In the EGM, the Vijay Shekhar Sharma-led company may also declassify him as 'promoter' of the company as per the Securities and Exchange Board of India (Sebi)'s public listing rules. The announcement comes ahead of Paytm's much-awaited initial public offering (IPO) in November.</p>
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The money will be raised via sale of new Paytm stock as well as a secondary offering of shares at an expected valuation of $24 billion to $25 billion.</p>
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"The company proposes to create, offer, issue and allot fresh equity shares of the face value of Rs 1 each of the company (the "equity shares") up to an aggregate of Rs 12,000 crore.  The proposed offering is likely to include a fresh issue of the equity shares by the company and an offer for sale by certain, existing shareholders of the company," Paytm had earlier said. </p>
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The prospectus is expected to be filed shortly after Paytm's extraordinary general meeting (EGM) of shareholders in Delhi on July 12.</p>
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Paytm’s investors include China's Alibaba and Japan's SoftBank as backers, is seeking shareholder approval at the EGM to sell up to 12,000 crore in new stock and have an option to retain an over-subscription of up to 1%.</p>
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There were $3.6 billion worth of IPOs in India in the first half of 2021, up from $1.1 billion at the same time last year, according to Refinitiv.</p>
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Paytm is reported to have hired top investment bankers such as JPMorgan Chase Morgan Stanley, ICICI Securities, Goldman Sachs and HDFC Bank for the IPO.</p>