You are here: Home » Markets » IPOS » News
Business Standard

Paytm's Rs 16,600 cr IPO gets Sebi nod, listing likely in November: sources

Paytm was launched in 2009 as a mobile-first digital payments platform to enable cashless payments

Paytm | IPO

BS Reporter  |  New Delhi 

Photo: Bloomberg
Photo: Bloomberg

One97 Communications, the parent of Paytm, has received the Securities and Exchange Board’s (Sebi’s) nod for its Rs 16,600-crore initial public offering (IPO).

The firm is likely to launch the offer in November, said sources aware of the development. The is touted to be the biggest ever in the country, surpassing the Rs 15,000 crore raised by government-owned Coal India in 2010. The comprises a fresh issue of equity shares of Rs 8,300 crore and an offer for sale (OFS) by existing shareholders of Rs 8,300 crore.

According to the Draft Red Herring Prospectus (DRHP), shareholders Ant Financial, Alibaba, Elevation Capital V, Saif III Mauritius, Svf Panther (Cayman) and Bh International Holdings are all looking to offload some portion of their shares through the OFS. filed its DRHP with in July. Sources said not much has changed from the initial DRHP.

The company has proposed to use Rs 4,300 crore for growing and strengthening the ecosystem, including through acquisition of consumers and merchants and providing them with greater access to technology and financial services, PTI reported.

plans to earmark Rs 2,000 crore for business initiatives, acquisitions and strategic partnerships and up to 25 per cent of the total fund raised through the for general corporate purposes, according to PTI.

Paytm is India’s leading digital ecosystem for consumers and merchants. The company’s two-sided (consumer and merchant) ecosystem enables commerce, and provides access to financial services, by leveraging technology to improve the lives of consumers and helps merchants grow their businesses.

Paytm was launched in 2009 as a mobile-first digital payments platform to enable cashless payments. The company’s financial services businesses, i.e., mobile banking, lending, insurance, wealth management services were launched recently between 2019 and 2021 and contribute a small percentage to its revenue.

Its revenues from operations in FY21 stood at Rs 2,800 crore from 114 million annual transacting users and had facilitated 7.4 billion transactions, including transactions made to merchants via its ecosystem.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Fri, October 22 2021. 20:20 IST