Pegged as the largest IPO in India’s history, banking sources are expecting the company to list at a valuation of anywhere between $16 to $21 billion.
As Paytm still awaits a nod from markets regulator Securities and Exchange Board of India (SEBI) for its Rs 16,600 crore Initial Public Offering (IPO), the company has now decided to skip its pre-IPO funding round.
The development was first reported by Bloomberg citing sources. The report said that Paytm has gone back on its Rs 2,000 crore pre-IPO plans over valuation differences with investors.
However, sources aware of the development told Moneycontrol that the management is keen on meeting its target for a listing in the month of November, soon after the festival of Diwali. With SEBI yet to give a green light, the payments and financial services company is considering doing away with an additional round and not because of differences in the listing valuation.
“There are no valuation differences between investors and Paytm’s management. The company is heading for an IPO directly, to adhere to the timelines it had kept in mind,” said one of the sources mentioned above.
The pre-IPO round was anyway seen as an option that can be done away with if required and the Draft Red Herring Prospectus (DRHP) mentioned the same, the source added.
Pegged as the largest IPO in India’s history, banking sources are expecting the company to list at a valuation of anywhere between $16 to $21 billion. The company was last valued at $16 billion, according to reports.
The company, called One97 Communications, had filed for an IPO in July in a year that saw a number of internet companies heading to D-Street, starting with Zomato. Zomato, too, had not opted for a pre-IPO round and was listed at a premium of 66 percent over its final offer price.
The company posted a consolidated loss of Rs 1,701 crore on a revenue of Rs 2,802.4 crore for the financial year FY21 and a loss of Rs 2,942.4 crore on revenue of Rs 3,280.8 crore for FY20, according to details in its DRHP.