Paytm parent One97 Communication will file a draft prospectus on July 12 for an initial public offering to raise $2.3 billion, Reuters reported citing sources. Paytm's IPO plan includes the offering of equity shares under which it'll offer the fresh issue of equity shares and also an offer-for-sale of equity shares by its shareholders.
Paytm will raise about Rs 12,000 crore by issuing fresh equity. The final decision on the matter will be taken at an extraordinary general meeting (EGM) on July 12.
In the EGM, the Vijay Shekhar Sharma-led company may also declassify him as 'promoter' of the company as per the Securities and Exchange Board of India (Sebi)'s public listing rules. The fundraising announcement comes ahead of Paytm's much-awaited initial public offering (IPO) in November.
"The company proposes to create, offer, issue and allot fresh equity shares of the face value of Rs 1 each of the company (the "equity shares") up to an aggregate of Rs 12,000 crore [...] The proposed offering is likely to include a fresh issue of the equity shares by the company and an offer for sale by certain, existing shareholders of the company," Paytm had earlier said.
Paytm has roped in some of the most influential investment bankers for its proposed IPO. JP Morgan, Morgan Stanley, Goldman Sachs and ICICI Securities are likely to lead the issue, touted to be the largest IPO in the financial sector.
The fintech giant is also looking to file its draft red herring prospectus this month. Paytm had made its IPO plans official after reaching out to employees and giving them a chance to tender their shares under the forthcoming issue as part of an offer for sale shares.
Some of Paytm's shareholders include Alibaba's Ant Group (29.71 per cent), Softbank Vision Fund (19.63 per cent), and Saif Partners (18.56 per cent). Vijay Shekhar Sharma holds a 14.67 per cent stake in the company. AGH Holding, T Rowe Price and Discovery Capital, Berkshire Hathaway also hold stakes in the company.
Led by founder and chief executive Sharma, Paytm has been raising revenue and monetising its services over the past year. The company has expanded beyond digital payments into banking, credit cards, financial services, wealth management and digital wallets.
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