IPO-bound Paytm sends 'offer for sale' to employees, to file draft prospectus in July

One97 Communications Ltd, which runs digital payments firm Paytm, has sent an 'offer for sale' to its employees, asking if they want to sell the company's shares ahead of its initial public offering (IPO).

Paytm's board has  given an in-principle approval to raise around Rs 22,000 crore through IPO, one of the largest in India. The company is looking at an enterprise value of over Rs 2 lakh crore for the IPO.

One97 Communications Ltd sent the offer for sale to its employees on Monday, Bloomberg reported.

Also read: Paytm's loss narrows to Rs 1,704 crore in FY21, revenue declines 10%

One97 Communications "is proposing to undertake an initial public offering of its equity shares ("Equity Shares"), subject to market conditions, regulatory, corporate and other approvals, and other relevant considerations, in accordance with applicable law, and has received an in-principle approval from the board of directors of the company in this regard," the agency quoted One97 Communications Secretary Amit Khera as saying in the notice to employees and shareholders.

The company is finalising its draft red herring prospectus (DRHP) and can file it as soon as first week of July, a source was quoted as saying.

Paytm's shareholders include Alibaba's Ant Group (29.71 per cent), Softbank Vision Fund (19.63 per cent), Saif Partners (18.56 per cent), Vijay Shekhar Sharma (14.67 per cent).

AGH Holding, T Rowe Price and Discovery Capital, Berkshire Hathaway hold less than 10 per cent stake in the company.

Also read: Apple users can now access Siri without internet connection