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US, European funds race to invest in Paytm public issue: Report

Paytm, which is seeking to raise $2.2 billion, is aiming for a pre-Diwali IPO launch and is awaiting approval from market regulator Securities and Exchange Board of India (SEBI).

October 12, 2021 / 01:35 PM IST
In July, Paytm had filed the draft red herring prospectus (DRHP) for its Rs 16,600 crore IPO, which is expected to be India's biggest public issue so far.

In July, Paytm had filed the draft red herring prospectus (DRHP) for its Rs 16,600 crore IPO, which is expected to be India's biggest public issue so far.

A set of new investors, including US-based asset manager Alkeon Capital as well as funds managed by Morgan Stanley and Goldman Sachs, is vying to invest in the Paytm public issue, according to reports in the media.

Some European funds looking to invest in the Ant Group IPO, which was later scrapped by the Chinese government, have spoken to Paytm, the reports said.

Alkeon is in talks with Paytm and is looking to pick up shares through anchor allotment as well as during the IPO. While the valuation has yet to be finalised, they are garnering strong interest from institutional investors from the US and Europe, it quoted a source as saying.

Moneycontrol could not independently verify the report.

Paytm, which is seeking to raise $2.2 billion, is aiming for a pre-Diwali listing and is awaiting approval from market regulator Securities and Exchange Board of India (Sebi).

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The company is also receiving demand from sovereign wealth funds (SWFs) and foreign institutional investors (FIIs) valuing it at $20-122 billion, sources told Moneycontrol on condition of anonymity.

An SWF has offered to buy over $500 million of shares in the IPO, the sources said. The company had been expecting a valuation of up to $30 billion, according to previous reports.

Paytm filed its share sale prospectus in July for a Rs 16,600-crore IPO, with a sale of fresh stock and offer for sale (OFS) by shareholders each worth Rs 8,300 crore. It allows the company to raise Rs 2,000 crore in a pre-IPO round.
Moneycontrol News
first published: Oct 12, 2021 01:34 pm

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