Paytm IPO files for ₹16,600 crore IPO Details here

Paytm's parent company One97 Communications has today filed draft prospectus for its initial public offering (IPO) of up to ₹16,600 crore, reported news agency Reuters. Paytm's IPO comprises of fresh issue of up to ₹8,300 crore, offer for sale of up to ₹8,300 crore. The shareholders of One97 Communications (OCL) had recently given its nod for the IPO at the extraordinary general meeting held on 12 July.

IPO Details:

• The SoftBank-backed Indian digital payments startup Paytm has filed for its share sale of up to ₹16,600 crore ($2.23 billion), draft papers submitted to the market regulator SEBI showed on Friday, as reported by Reuters.

• JPMorgan Chase, Morgan Stanley, ICICI Securities, Goldman Sachs, Axis Capital, Citi and HDFC Bank are the booking running managers for the IPO.

• The IPO will include an issue of new shares worth ₹8,300 crore and an offer for sale worth ₹8,300 crore, Paytm, which is backed by investors including Berkshire Hathaway Inc, China's Ant Group and Japan's SoftBank.

• The Noida-based company, which is owned by One97 Communications Ltd, said it would use the IPO proceeds to strengthen its payment ecosystem and for new business initiatives and acquisitions.

• Alibaba.Com Singapore E-Commerce Private held 7.2% stake in one97 pre-IPO.
• Antfin (Netherlands) Holding B.V. held 29.6% stake in One97 pre-IPO.

• According to the prospectus, One97 posted a consolidated net loss of 16.96 billion rupees for the year ended March 31, lower than the previous year's 28.42 billion rupees loss. Revenue slipped 14.6% to 28.02 billion rupees.

• The share sale could make it India's largest stock market debut ever, surpassing the IPO of the state-owned Coal India in 2010.

The shareholders of OCL, which owns brand Paytm, had recently approved plans of its ₹16,600 crore public offering which was put to vote at the extraordinary general meeting held on 12 July. They also approved the proposal that founder Vijay Shekhar Sharma, would not be identified as the "promoter" of the company.

This is to comply with Securities and Exchange Board of India (Sebi) rules requiring promoters of listed firms to have at least 20% of post-issue capital. Sharma holds 9,051,624 equity shares of OCL, amounting to 14.61% of its total paid-up equity share capital. Sharma will continue to be the chairman, managing director, and chief executive officer (CEO) of the company.

Meanwhile, many top management personnel recently left the company ahead of its IPO. Amit Nayyar, president at Paytm, who was heading the company’s financial services division, tendered his resignation last month. In June, chief human resources officer Rohit Thakur also exited the company, after an 18-month stint. Earlier this year, Jaskaran Singh Kapany, Paytm’s head of marketing, left the company to join Xiaomi India as its chief marketing officer.