IPO bound Paytm is all set to raise $1.1 billion (Rs 8,250 crore) from anchor investors including Blackrock, CPPIB and GIC, according to sources privy to the development.
The round will close on November 3.
The biggest initial public offer in the history of the Indian capital markets by Paytm is poised for a post-Diwali launch between November 8 and 10.
Paytm is set to raise Rs 18,300 crore from the markets through a fresh issue of Rs 8,300 crore and an offer for sale (OFS) of Rs 10,000 crore. The price band has been kept in the range of Rs 2,080- Rs 2,150.
Paytm is currently India's second most-valuable internet company, last valued at $16 billion when it raised a billion dollars in November 2019 led by T Rowe Price, Discovery Capital and D1 Capital.
The public offer is expected to take the company's valuation to $20 billion.
As of June 30, 2021, the total user base of the company increased to 337 million. It also claims to have over 21.8 million registered merchants on its platform.
Paytm had filed its draft red herring prospectus (DRHP) with the market regulator in July.
It will be listed on the Bombay Stock Exchange and the National Stock Exchange.
The company is expected to use the primary proceeds for growth including customer and merchant acquisition and investing in new business initiatives, acquisitions, and strategic partnerships.
For the three months ended June 2021, Paytm has seen a huge uptick in its revenues driven by its payments and financial services offerings.
The company’s revenue was up by 46 percent to Rs 948 crore in the first quarter of financial year 2022 from Rs 649 crore in the like period of the previous financial year. Paytm’s losses stood at Rs 382 crore for the three months ended June 2021.
Currently, Paytm is betting big on its lending vertical. And as per its RHP in the second quarter of financial year 2022, it disbursed 2.84 million loans.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
