Paytm To Launch IPO Of Rs 16,600-Cr By October
- ByStartupStory | July 27, 2021
Paytm , a leading Digital payments and financial services firm wants to hit the market with its Rs 16,600 crore IPO by October, sources said on Monday. The company had filed draft papers for its initial share sale with the market regulator SEBI on July 15. It expects a response from the capital market watchdog by mid-September, after which it plans to proceed with listing as early as possible. SEBI will take around two months to revert on the draft. Once the documents are received, Paytm will file for IPO. The process depends on regulatory approvals. According to the draft document, the company plans to raise Rs 8,300 crore through fresh equity issuance and another Rs 8,300 crore through an offer-for-sale.
Paytm founder, Managing Director and Chief Executive Officer Vijay Shekhar Sharma and Alibaba group firms will dilute some of their stake in the proposed offer-for-sale. The company has proposed to use Rs 4,300 crore for growing and strengthening the Paytm ecosystem, including through acquisition of consumers and merchants and providing them with greater access to technology and financial services. Paytm plans to earmark Rs 2,000 crore for business initiatives, acquisitions and strategic partnerships and up to 25 percent of the total fund raised through the IPO for general corporate purposes. According to the document, Paytm’s merchant base grew to 2.11 crore as on March 31, 2021 from 1.12 crore in March 2019, and gross merchandise value almost doubled to over Rs 4 lakh crore in the financial year from Rs 2.29 lakh crore in FY 2019.
The company has reported a narrowing of loss from Rs 2,943.3 crore in FY’20 and Rs 4,235.5 crore in FY’19 to Rs 1,704 crore in FY’21. The total income declined from Rs 3,540.7 crore in FY’20 to Rs 3,186.8 crore in FY’21. Paytm has reported negative cash flow of Rs 222.1 crore in FY ’21 primarily due to operating losses and on account of additional working capital requirement.
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