Paytm's RHP to come this week, to raise IPO issue size to Rs 18,300 crore

Paytm founder and CEO Vijay Shekhar Sharma (Image: WikiMedia Commons)

Paytm's Red Herring Prospectus (RHP) is expected to come as early as this week which is likely to have a revised initial public offering (IPO) issue of Rs 18,300 crore, according to sources privy to the development.

The company was earlier expected to file an IPO to raise Rs 16,600 crore, which was already touted to be India’s largest market debut, a record that was previously held by Coal India, which raised Rs 15,000 crore over a decade ago.

In unlikely circumstances it may get delayed by the first half of the next week given the processes involved.

While the primary will continue to be Rs 8,300 crore, the additional amount will go to the offer for sale taking the amount to Rs 10,000 crore.

Around half of the offer for sale will be done by Ant Financial while the rest by Elevation Capital, Softbank and other existing shareholders.

By value, Paytm will be listed as a professionally managed company. As per SEBI guideline, to be a professionally managed company, no single entity can hold over 25 percent stake in the company.

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.

One97 was founded by Vijay Shekhar Sharma in 2000. It began its journey as a value-added service provider and evolved over the years to become an online mobile payments firm.

It currently offers wallet, UPI, credit and debit cards, point of sale and services like Buy Now, Pay Later, among other things.