Paytm plans to raise Rs 21800 crore through IPO
The digital payments provider has shortlisted Morgan Stanley, Citigroup Inc., and JPMorgan Chase & Co. for running the IPO
India’s leading digital payments provider Paytm is aiming to raise about Rs 21800 crore via an initial public offering (IPO), according to a Bloomberg report. The report further stated that Berkshire Hathaway, SoftBank Group Corp., and Ant Group Co. backed startup plans to list in India around November.
Paytm, which is owned by One97 Communications, is eyeing a valuation of around $25 billion to $30 billion. The One97 board is expected to meet this Friday to formally approve the IPO.
Paytm has shortlisted Morgan Stanley, Citigroup Inc., and JPMorgan Chase & Co. for running the IPO. The process is expected to get rolling in late June or early July.
The IPO will include a mix of new and existing shares to meet regulatory obligations in India. As per the regulations, companies are required to float 10% of shares within two years and 25% within five years.
According to regulatory filings, Paytm's consolidated operating revenue grew 1.5% from Rs 3,232 crore in FY19 to Rs 3,281 crore during FY20. Total expenses were down 19.45% at Rs 6226.3 crore from Rs 7730.14 crore. The total loss dropped to Rs 2942.4 crore from Rs 4217.2 crore a year ago.
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