Paytm Said to Have Secured SEBI’s Approval for India’s Biggest IPO

Digital monetary companies agency Paytm has obtained market regulator SEBI’s approval for its Rs 16,600 crores preliminary public provide, a supply concerned within the course of mentioned on Friday. The firm expects to hit the bourses by the tip of this month and is planning to skip the pre-IPO share sale rounds to fast-track itemizing.

“SEBI has given approval for Paytm IPO,” the supply mentioned on situation of anonymity.

The firm’s plan of shelving the pre-IPO elevate shouldn’t be associated to any valuation variations, the supply added.

The proposed IPO, if profitable, can be the biggest such provide. Coal India’s Rs 15,200-crores preliminary public provide (IPO) in 2010 is the nation’s largest one until date.

Paytm is taking a look at a valuation of Rs 1.47-1.78 lakh crores.

US-based valuation professional Aswath Damodaran, who’s a professor specialising in finance on the Stern School of Business at New York University, has valued the unlisted shares of the agency at Rs 2,950 apiece.

According to the draft IPO paperwork, the corporate plans to lift Rs 8,300 crores by contemporary subject of fairness shares and one other Rs 8,300 crores by the offer-for-sale route.

Paytm founder, managing director and chief government Vijay Shekhar Sharma and Alibaba Group companies will dilute a few of their stake within the proposed offer-for-sale.

Alibaba group agency Antfin (Netherlands) Holding BV is anticipated to promote a minimum of 5 % stake to deliver its shareholding under 25 % to adjust to regulatory necessities, in keeping with a supply.

As per the paperwork, buyers promoting stake embody Antfin (Netherlands) Holding BV (which has a 29.6 % stake), Alibaba.com Singapore E-Commerce (7.2 %) and Elevation Capital V FII Holdings (0.7 %).

Moreover, Elevation Capital V (which has a 0.6 % stake), SAIF III Mauritius Company (12.1 %), SAIF Partners India IV (5.1 %), SVF Panther (Cayman) (1.3 %) and BH International Holdings (2.8 %) will even promote stake.

The firm has proposed to make use of Rs 4,300 crores for rising and strengthening the Paytm ecosystem, together with by acquisition of shoppers and retailers and offering them with better entry to expertise and monetary companies.

Paytm plans to earmark Rs 2,000 crores for enterprise initiatives, acquisitions and strategic partnerships and as much as 25 % of the full fund raised by the IPO for common company functions.

According to the paperwork, Paytm’s service provider base grew to 2.11 crores as on March 31, 2021 from 1.12 crores in March 2019, and gross merchandise worth (GMV) virtually doubled to over Rs 4 lakh crores within the monetary yr (FY) from Rs 2.29 lakh crores in FY 2019.

The firm has reported a narrowing of its loss to Rs 1,704 crores in FY21, from Rs 2,943.3 crore in FY20 and Rs 4,235.5 crores in FY19.

Total earnings declined to Rs 3,186.8 crores in FY21, from Rs 3,540.7 crores in FY20.

Paytm has reported destructive money circulate of Rs 222.1 crores in FY21 primarily as a result of working losses and extra working capital requirement.