Paytm Receives Sebi's Approval To Float Rs 16,600 Cr IPO
One97 Communications, the parent company of Paytm has received Sebi's go ahead to float its 16,600 crore IPO (Initial Public Offering), said sources close to the development. The company had filed its papers with the market regulator earlier on July 16 this year.
As per recent reports, the company is unlikely to consider a pre-ipo placement of Rs 2,000 crore proposed earlier, mainly due to valuation differences. The IPO includes offloading of shares worth Rs 8,300 crore from the company's existing shareholders and new issue of shares worth Rs 8,300 crore.
The company has proposed to use the net proceeds of the offer for growing and strengthening the company's ecosystem by acquisition of consumers and merchants. Besides, the company has also proposed investments in new business initiatives, acquisitions, and strategic partnerships, as per the company's DRHP filed in July.
Moving ahead, the fintech major plans to float its initial share sale during the festive season in the upcoming month, said people cited above.
However, earlier in 2010, the company made its first attempt to enter the Indian bourses via share sale. Unfortunately, the plan wasn't executed amid high volatility in the markets then.
With the offer size being Rs 16,600 crore, Paytm's IPO will be the country's biggest till date. Previously in October 2010, Coal India raised Rs 15,200 crore via initial share sale.
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