The board of One97 Communications, the parent firm of Paytm, is planning to go public in what is touted to be one of the country's largest initial public offerings (IPO). Paytm's $3-billion IPO (around Rs 21,745 crore taking USD/INR value at Rs 72.48) is likely to be slated for Diwali (October-December) and the company is targeting a valuation of over $25 billion, CNBC-TV18 has reported. So far, the biggest IPO that India has seen was Coal India's Rs 15,475-crore issue, which was listed in November 2010. Here are the top 10 IPOs in India's history. (Data Source: ACE Equity)
IPO-bound One97 Communications, which owns and operates online payments firm Paytm, reported a revenue of Rs 3,186 crore for the financial year 2020-21 against Rs 3,540 crore in the previous year, the Noida-based company's annual report shows.
The company reported a loss of Rs 1,701, an improvement from the previous year’s loss of Rs 2,942 crore, the report, a copy of which is with Moneycontrol, says. The revenue from operations stood at Rs 2,802 crore against Rs 3,280 crore in the previous financial year.
"Despite a significant disruption in the business of our merchant partners due to the ongoing pandemic especially in the first half of the year, we have had a minimal impact on revenues, due to strong recovery in the second half of the year," Paytm said in a statement.
Last week, the company’s board gave in-principle approval for an initial public offering (IPO), setting the stage for what is likely to be one of India's largest public offerings.
The eight-member board met on May 28, 2021 to give their nod to a $3-billion IPO, making it the biggest in India's history. It is aiming to list in India in November 2021 at a valuation of $25-$30 billion.
The company was last valued at $16 billion when it raised $1 billion from Softbank and Ant Financial in 201
Paytm has been trying to acquire market share across a spectrum of financial services offerings by launching mutual funds, wealth management, stock trading and insurance services.
It has also applied for a New Umbrella Entity (NUE) licence, as part of a consortium comprising Ola, IndusInd Bank, Zeta, Suryoday Small Finance, among others. It has also applied for a general insurance licence.
Also read: As Paytm plans to launch India's biggest public issue, here are top 10 IPOs so far
According to a note released by Bernstein, Paytm's revenue base is likely to double by the financial year 2023 to $1 billion with non-payments revenue contributing 33 percent.
Following IPO reports, the company's unlisted shares also soared 70 percent in the grey market, from Rs 11,000 to Rs 18,500 in a week.
The grey market is an unofficial trading platform where shares get traded before the IPO and listing on bourses. Though no delivery of shares takes place in the grey market before listing, an unofficial future contract is made. These markets are beyond the purview of the Securities and Exchange Board of India.