The IPO will include an issue of new shares
worth 83 billion rupees and an offer for sale worth 83 billion rupees, said
Paytm, which is backed by investors including Berkshire Hathaway Inc, China's
Ant Group and Japan's SoftBank.
The Noida-based company, which is owned by
One97 Communications Ltd, said it would use the IPO proceeds to strengthen its
payment ecosystem and for new business initiatives and acquisitions.
One97 posted a consolidated net loss of
16.96 billion rupees for the year ended March 31, lower than the previous
year's 28.42 billion rupees loss, according to the prospectus. Revenue slipped
14.6% to 28.02 billion rupees.
Started a decade ago as a platform for
mobile recharging, Paytm grew rapidly after ride-hailing firm Uber listed it as
a quick payment option.
Its IPO plans come amid a pandemic-fuelled
expansion in India's digital economy and an intensifying battle for market
share with Alphabet Inc's Google Pay and Facebook Inc-owned WhatsApp Pay.
Adoption of digital payments has risen
since India's 2016 ban on high-value currency bank notes, helping Paytm expand
its services to include insurance and gold sales, movie and flight ticketing,
and bank deposits and remittances.
The company was planning to raise $268
million in a pre-IPO funding round, a source told Reuters on Monday.
Several Indian startups have spelt out
plans to go public to cash in on liquidity brought in by foreign funds. A few
of the closely watched ones include food delivery startup Zomato, Walmart
Inc-owned e-commerce giant Flipkart, beauty brand Nykaa and ride-hailing
service Ola.
Paytm's $2.23 billion raise through the IPO
would make it among India's biggest public listings after state-run miner Coal
India in 2010 and Reliance Power in 2008.
JPMorgan Chase, Morgan Stanley, ICICI
Securities, Goldman Sachs, Axis Capital, Citi and HDFC Bank are the booking
running managers for the IPO.
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