Paytm gets SEBI's nod for 'India's largest IPO' worth Rs. 16,600 crore

Paytm is set to launch India's biggest Initial Public Offering (IPO), thereby surpassing the previous record held by Coal India when they raised Rs 15,000 crore about a decade ago. Paytm are set to raise Rs 16,600 crore after reportedly receiving a nod from market regulator SEBI.

Paytm receives nod for Rs 16,600 crore IPO

According to PTI, sources informed on Friday that SEBI had given Paytm the nod to launch India's biggest IPO. The company is also planning to skip the pre-IPO share sales rounds to fast-track listing. The source told PTI, "Sebi has given approval for Paytm IPO." With this IPO, Paytm hopes to attain a staggering valuation of Rs 1.47-1.78 lakh crore. US-based valuation expert Aswath Damodaran has valued Paytm's unlisted shares at Rs 2,950 per share.

Paytm IPO details

One97 communications, which is the parent company of Paytm, received the nod from SEBI for its Rs 16,600 crore IPO. According to the Draft Red Herring Prospectus (DRHP), Rs 8,300 crore will be raised from primary share sales, while the rest of the funds will be raised via an offer for sale (OFS). Existing investors will be given an opportunity to sell their shares in the OFS round.

The draft also mentioned that JPMorgan Chase, Morgan Stanley, ICICI Securities, Goldman Sachs, Axis Capital, Citi and HDFC Bank are the book-running managers for the Paytm IPO. The company hopes to list in mid-November after having filed its draft in July.

Who are the investors in Paytm?

According to the DRHP, investors ANT, Alibaba, Softbank and Elevation Capital are set to sell shares through the OFS. Meanwhile, Berkshire Hathaway and Ratan Tata's RNT Associates are also listed among the selling shareholders. However, it is important to note that the draft does not disclose the percentage of the stake being sold by any of the shareholders in the company.

The DRHP read, "The final price at which equity shares will be allotted to ASBA Bidders will be in terms of the red herring prospectus and the prospectus. Equity shares will be allotted to anchor investors at the anchor investor offer price, which will be decided by our Board or the IPO Committee, as applicable, in consultation with the JGC-BRLMs and the BRLMs, in terms of the red herring prospectus and the prospectus."