Indian Payment Giant Paytm may go for $2.3B IPO next week

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Indian Payment Giant Paytm may go for $2.3B IPO next week

Two sources close to the matter confirmed Monday that One97 Communications Ltd, the parent company of Indian payments firm Paytm will file a draft prospectus for a domestic initial public offer (IPO) on July 12. The prospectus seeks to raise $2.3 billion.

Sources said that the money will be raised through a secondary offering and sale of new Paytm stock, with an expected value anywhere from $24 billion to 25 (with possibility for raising it later if necessary). The Chinese investors made big investments into the Indian companies. Paytm also got Chinese investment from various banks and institutions.

Paytm, the popular Indian e-commerce company is seeking shareholder approval at its upcoming general meeting to sell up 120 billion rupees in new stock and has an option of retaining oversubscriptions of 1%.

This will be done through selling $1.61 billion worth on their platform as many analysts believe that it’s necessary for them not only now but also into years ahead due too how quickly competition keeps tightening between global players like Amazon Prime Now & Alibaba Cloud Computing Services Incs (TBC).

As recent news broke out last week about Softbank investing $200 Million more than anticipated just days after winning exclusive negotiations with Paytms parent entity Alibabapay toward strategic partnerships currently valued around 500 million RMB ($80M USD)

The companies are raising the funds through the IPO’s and business. Paytm is an Indian payment app system which dominates into the digital payment market. It grew into a billionaire company in just few years. The company is making plans and all set to collect the funds and money through IPO. They started the process to list the company on charts. Also the Indian investors are looking eagerly to be a part of it as it has many upcoming projects which will increase valuation of the company. Chinese investors also invested in Paytm.

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