Paytm IPO: At Rs 18,300 Cr, Biggest Issue To Open Between November 8 To 10 — Check Details

Considered as the biggest issue in the history of the Indian capital markets, Paytm has also increased size of its IPO to Rs18,300 crore from Rs16,600 crore

Mumbai: The much-awaited initial public offering (IPO) of the digital payments company Paytm will be opened for subscription on 8 November and close on 10 November. The development comes after a Bloomberg report revealed that the company was considering scrapping the proposed Rs2,000 crore ($268 million) share sale ahead of its issue over valuation differences.

However, the Moneycontrol report suggested that the company has decided to skip the pre-IPO funding round, and aiming to meet its target for a listing in the month of November just after Diwali. The company last week received market regulator SEBI approval for listing. Paytm will go for the public listing on both the Indian stock exchanges - BSE and NSE.

Here's all you need to know

The Noida-based company, which is owned by One97 Communications Ltd aims to list on exchanges on 18 November, according to business publication Mint. 

Besides, the digital payment company has also increased size of its IPO to Rs18,300 crore from Rs16,600 crore, as per the PTI. It comprises a fresh issue of Rs8,300 crore and an offer for sale (OFS) of up to Rs10,000 crore.

Its biggest shareholder Alibaba group firm Ant Financial and existing investors including Softbank deciding to dilute more stake in the company, sources said.

The company had plans to raise a total of Rs 16,600 crore by issuing fresh equity worth Rs 8,300 crore and another Rs 8,300 crore through an offer-for-sale.

With existing shareholders deciding to dilute more equity, the offer-for-sale will go up by Rs 1,700 crore to Rs 10,000 crore.

"Roughly half of the offer for sale is by Ant Financial and the remaining by Alibaba, Elevation Capital, Softbank and other existing shareholders," according to one of the PTI sources. Softbank was not part of investors selling stake in the disclosure made by the company in its IPO draft paper.

According to the document, investors selling stake included Antfin (Netherlands) Holding BV (which has 29.6 per cent stake), Alibaba.Com Singapore E-Commerce (7.2 per cent) and Elevation Capital V FII Holdings (0.7 per cent).

Elevation Capital V (which has 0.6 per cent stake), SAIF III Mauritius Company (12.1 per cent), SAIF Partners India IV (5.1 per cent), SVF Panther (Cayman) (1.3 per cent) and BH International Holdings (2.8 per cent) were also participating in OFS.

Paytm will be listed as a professionally managed company. "As per SEBI guideline, to be a professionally managed company, no single entity can hold over 25 per cent stake in the company," as per PTI source.

Why does the issue assume significance?  

So far, the biggest offer in Indian capital markets has remained Coal India (CIL), which raised Rs15,475 crore in 2010.  The proceeds from the IPO will be used to strengthen its payment ecosystem and for new business initiatives and acquisitions.

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