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 $2.3billion.
Sources said that the money will be raised through the sale of new Paytm stock and a secondary offering. The expected value of the shares is between $24 billion and $25 billion, with the possibility of raising the amount later if necessary.
Paytm’s $2.3 billion IPO is India’s third-largest public listing. It will be after Coal India, a state-run miner, in 2010 and Reliance Power (2008).
Sources said that the prospectus would be filed within a few hours of Paytm’s extraordinary meeting (EGM), which was held in Delhi on July 12th.
Paytm, which counts China’s Alibaba (NYSE:BABA) and Japan’s SoftBank as backers, is seeking shareholder approval at the EGM to sell up to 120 billion rupees ($1.61 billion) in new stock and have an option to retain an over-subscription of up to 1%, Reuters reported previously.
According to Refinitiv, India had $3.6 billion in IPOs during the first half of 2021. This is an increase of $1.1 billion last year.
According to data, this year’s level is the highest since 2008. Sona BLW Precision Forgings was the largest Indian IPO in June, raising $757.4 Million.
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