SoftBank-backed Paytm has filed for an preliminary public offering of as much as $2.23 billion, draft papers submitted to the nation’s market regulator confirmed on Friday

Last Updated at July 16, 2021 11:43 IST

SoftBank-backed Indian digital funds startup Paytm has filed for an preliminary public offering (IPO) of as much as Rs 16,600 crore ($2.23 billion), draft papers submitted to the nation’s market regulator confirmed on Friday. The IPO will embrace a problem of new shares value Rs 8,300 crore and an offer on the market value Rs 8,300 crore, mentioned Paytm, which is backed by buyers together with Berkshire Hathaway Inc, China’s Ant Group and Japan’s SoftBank. The Noida-based firm, which is owned by One97 Communications Ltd, mentioned it might use the IPO proceeds to strengthen its cost ecosystem and for brand spanking new enterprise initiatives and acquisitions. One97 posted a consolidated internet loss of 16.96 billion rupees for the yr ended March 31, decrease than the earlier yr’s Rs 2,842 crore loss, in accordance with the prospectus.

Revenue slipped 14.6% to twenty-eight.02 billion rupees.

Started a decade in the past as a platform for cellular recharging, Paytm grew quickly after ride-hailing agency Uber listed it as a fast cost choice. Its IPO plans come amid a pandemic-fuelled enlargement in India’s digital economic system and an intensifying battle for market share with Alphabet Inc’s Google Pay and Facebook Inc-owned WhatsApp Pay. Adoption of digital funds has risen since India’s 2016 ban on high-value foreign money financial institution notes, serving to Paytm broaden its companies to incorporate insurance coverage and gold gross sales, film and flight ticketing, and financial institution deposits and remittances. The firm was planning to boost $268 million in a pre-IPO funding spherical, a supply advised Reuters on Monday. Several Indian startups have spelt out plans to go public to money in on liquidity introduced in by overseas funds. Just a few of the carefully watched ones embrace meals supply startup Zomato, Walmart Inc-owned e-commerce large Flipkart, magnificence model Nykaa and ride-hailing service Ola. Paytm’s $2.23 billion elevate by means of the IPO would make it amongst India’s largest public listings after state-run miner Coal India in 2010 and Reliance Power in 2008. JPMorgan Chase, Morgan Stanley, ICICI Securities, Goldman Sachs, Axis Capital, Citi and HDFC Bank are the reserving operating managers for the IPO. ($1 = 74.5140 Indian rupees)

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