Paytm IPO Latest News: Paytm has got approval from market regulator SEBI for Rs 16,600 crore IPO.
Paytm IPO News: Digital financial services company Paytm’s IPO worth Rs 16,600 crore has been approved by market regulator SEBI. Sources related to this matter gave this information to dgmartpro Business. SEBI has approved the draft Red Hairing Prospectus (DRHP) of Paytm’s parent company One97 Communications. This will be the biggest IPO of the country till date. It is expected that the company can bring the offer by the end of this month.
The source said on the condition of anonymity, “Sebi has approved Paytm’s IPO.” The difference is not related. Paytm expects a valuation of Rs 1.47-1.78 lakh crore. US valuation expert Ashwath Damodaran has priced the firm’s unlisted shares at Rs 2,950 per share.
Plans to raise 8,300 crores from fresh equity
According to the company’s DRHP, Paytm will raise around Rs 16,600 crore from the IPO. This includes Rs 8,300 crore from fresh equity and Rs 8,300 crore from offer for sale (OFS). Veteran investors like Soft Bank, Warren Buffett and ENT Investment have invested money in Paytm. Paytm has more than 2 crore merchants.
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Country’s biggest IPO
Paytm’s IPO will be the biggest IPO ever in the country. Earlier, the record for the largest IPO till date was in the name of Coal India. In 2010, it had raised about Rs 15,500 crore through a public offer. Among the big investors of Paytm are China’s Alibaba and Ant Group, which together hold 38 percent stake. Japan’s Soft Bank holds 18.73 percent stake. Elevation Capital holds 17.65 percent stake. Let us tell you that Vijay Shekhar Sharma, Founder and CEO of Paytm will no longer be the promoter of the company. He will continue to be the Chairman, Managing Director and Chief Executive Officer.