DRHP For IPO Officially Filed By Paytm, Also To Raise Rs 16,600 Cr
- BySheetal Sidhu | July 16, 2021
, formally known as One97 Communications, will raise Rs 8,300 crore ($1.11 billion) from a primary fundraise, and the remaining Rs 8,300 crore from a secondary sale of shares by its existing investors, the company said in its draft red herring prospectus (DRHP) filed with the Securities and Exchange Board of India (SEBI) on Friday. In total, Paytm hopes its initial public offering to help it raise Rs 16,600 crore ($2.2 billion) in net proceeds, which it said will use to strengthen its ecosystem of offerings, invest in new business initiatives, acquisitions, and explore strategic partnerships. At the price tag of $2.2 billion, Paytm’s will be the largest stock market listing ever in the country in over a decade, beating the IPOs of Coal India ($2.06 billion), Reliance Power ($1.61 billion), General Insurance Corporation (GIC) ($1.55 billion), and Oil and Natural Gas Corp (ONGC) ($1.45 billion).
Despite its concerning fundamentals though, retail investors are excited about Paytm’s IPO – especially since Zomato opened its subscription books on July 14. The iconic company and its founder and CEO, Vijay Shekhar Sharma have inspired several entrepreneurs in the country to start up. The fintech startup, earlier this week, received approval from its shareholders to push ahead with its plans of a Rs 16,600 crore initial public offering (IPO). The Board also approved the removal of the ‘promoter’ label for Vijay Shekhar Sharma to comply with rules set by SEBI, which Paytm had proposed in its letter to the shareholders. JPMorgan, Morgan Stanley, Goldman Sachs, Citi, Axis Capital, ICICI Securities, and HDFC Bank, are among the lead bookrunners managing Paytm’s IPO, according to the DRHP.
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