Paytm Files DRHP for Rs 16,600 Cr IPO

Digital Payment startup Paytm, owned by One97 Communications, has filed its IPO papers with SEBI on Friday, July 16. This brings in another internet company to the listed space in the country after Zomato and Mobikwik in recent times. 

As per the DRHP, the company has balanced both Fresh offer and offer-for-sale at a 50/50 ratio. The total offer size is Rs 16,600 crore, which consists of a fresh offer of Rs 8,300 crore and an offer for sale of Rs 8,300 crore via its existing shareholders. 

India's leading payment service provider has proposed to utilize the proceeds of the offer for growing and strengthening the company's ecosystem, through acquisition of consumers and merchants and providing them with greater access to technology and financial services. They have also proposed investments in new business initiatives, acquisitions, and strategic partnerships.

Around Rs 4,300 crore will be used for growing and strengthening the ecosystem, and Rs 2,000 crore will be used for acquisitions and the general corporate purposes would be limited to 25 per cent of net proceeds, as per the DRHP.

The company posted a revenue of Rs 3,186 crore for FY'21 against Rs 3,540 crore in the previous year. However, the company is a loss-making company but the losses have been narrowed down to Rs 1,701 crore from Rs 2,942 crore in the previous year.

Having an offer value of Rs 16,600 crore, this will be India's biggest public offering till date. Previously, Coal India raised Rs 15,200 crore in Oct'10 and was the biggest IPO ever in the country. 

Internet companies are at a rush to hit the Indian bourses given the strong appetite among investors and with the liquidity in the market. Earlier this week, Zomato launched its IPO on July 14 and has seen a good response from both anchor and retail investors. Paytm's rival, Mobikwik also filed its DRHP with SEBI in the same week.