One97 Communications Ltd., which is the parent company of the brand Paytm, today filed its draft paper with the market regulator the Securities and Exchange Board of India (SEBI) for its Initial Public Offering of up to ₹16,600 crore. The IPO will include an offer for sale (OFS) worth ₹8,300cr and an issue of new shares worth ₹8,300cr. After the Coal India IPO in 2010 seeking to raise approximately 15,000crs the Noida based company, Paytm would be the biggest company to roll out its IPO of approximately 16,000crs. Paytm will use the proceeds to strengthen its payment ecosystem, look out for possible acquisitions and new business initiatives.
Paytm shares in the unlisted market have seen a strong upside after the surge in demand post today’s update on its IPO front. Yash Gupta, Equity Research Associate, Angel Broking Ltd said that in the unlisted market, shares of Paytm are in high demand, the company’s share price has surged from ₹1,000, before the news of IPO, to ₹2,500 as per the market reports. He has a positive outlook for the Paytm IPO.
In June, when the news broke out that the digital payment firm would come up with its IPO, Paytm’s stock in the unlisted market had seen great uprising, as the stock price had risen to ₹21,000 from ₹11,500 in a period of four days. Grey market is attributed to the place where the shares of a company are bought and sold outside the official trading channels and those who don’t come under the preview of SEBI regulations.
Companies having majority stakes in Paytm :
- Ant Financial – 29.6% (highest)
- Softbank Vision Fund – 19.6%
- Alibaba – 7.2%
- Elevation Capital – 5.1%
- Berkshire – 2.1%
- Vijay Shekhar – 9.6%
- VCC Investco – 5% (affiliate of Vijay Shekhar)