For its upcoming IPO, the Vijay Shekhar Sharma run firm is targeting a valuation of $20 billion, slightly lower than its ask of $22 billion, these sources said.
The biggest initial public offering to date, ahead of the Rs 15,000 crore raised by Coal India through its listing almost a decade back, Paytm is expected to mop up around Rs 18,300 crore from the issue.
This is more than the Rs 16,600 crore it targeted earlier.
The company increased its offer for sale portion or OFS part to Rs 10,000 crore when it refiled its prospectus with the securities and markets regulator Sebi earlier this week for fresh approval.
On Tuesday, ET reported that China’s Ant Group, the largest shareholder in Paytm, would execute nearly 50% of secondary share sale through OFS in the upcoming Paytm IPO. The SoftBank and Alibaba-backed firm has also finalised its plans to increase the total IPO size by another Rs 1,700 crore taking the total to Rs 18,300 crore, the report said.
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The increase of Rs 1,700 crore would be fully through OFS and the primary capital raise component would remain unchanged at Rs 8,300 crore. This means Ant will sell shares worth up to around Rs 5,000 crore bringing its holding to below 25% in Paytm parent One97 Communications.
According to the company’s draft prospectus filed with the regulator, it will use Rs 4,300 crore of the fresh issue to grow its existing business lines and acquire new merchants and customers.
The company has mandated investment banks Morgan Stanley, Goldman Sachs Group Inc., Citigroup Inc. and ICICI Securities Ltd to manage the issue.
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