Paytm Gets SEBI's Nod For Mega Rs 16,000 Cr IPO, Listing Likely By Mid-Nov: Report

If One97 Communications Ltd-owned Paytm achieves Rs 16,600 cr IPO, it would surpass the IPO raised by state-owned Coal India Ltd (Rs 15,000 cr) in 2013.

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New Delhi: Digital finance service and e-commerce platform Paytm on Friday received approval from Securities and Exchange Board of India (SEBI) for a mega Rs 16,600 crore initial public offer. 

According to reports, the company could list in Mumbai by mid-November, which will be India's biggest IPO so far.

Noida-headquartered firm, backed by Berkshire Hathaway Inc. and Jack Ma's Ant Group Co. expects to hit the stock market by the end of this month and is planning to skip the pre-IPO share sale rounds to fast-track listing.

The company's plan of shelving the pre-IPO raise is not related to any valuation differences, a source privy to the matter told news agency PTI. 

Several reports also claim that Rs 8,300 crore will be Paytm's primary share sale, while Rs 8,300 crore will be an offer for sale (OFS), where existing investors can sell their shares.

The company's draft red herring prospectus (DRHP) also mentions that it "may consider" a Pre-IPO placement.

"Pre-IPO is always just an option for companies heading for a market debut and it's not exercised by most companies. It makes sense to put the Pre-IPO option in the DRHP, as otherwise the company cannot raise any primary capital. Companies end up not taking up the Pre-IPO option as it only delays the process," another source told news agency IANS.

If the claimed report turns true and One97 Communications Ltd-owned Paytm achieves Rs 16,600 cr IPO, it would surpass the IPO raised by state-owned Coal India Ltd (Rs 15,000 cr) in 2013.

Paytm is also looking at a valuation of Rs 1.47-1.78 lakh crore.