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Paytm IPO: Draft Paper for Rs 16,600-Crore Filed. OFS, Opening Day, Key Details

Paytm

Paytm

Paytm has a plan to raise primary funds worth Rs 8,300 crore.

Paytm’s parent company One97 Communications has filed a draft prospectus for its much-awaited initial public offering (IPO) of ₹16,600 crore on Friday. This will the biggest public issue in India. The company has a plan to raise primary funds worth Rs 8,300 crore. The offer for sale, where existing investors can sell their shares has been fixed at Rs 8,300 crore.

The proceeds of the IPO will be used to “strengthen its payment ecosystem and for new business initiatives and acquisitions," the company said in a its Draft Red Herring Prospectus (DRHP). The company proposes to use Rs 4,300 crore for growing and strengthening Paytm ecosystem, including through acquisition of consumers and merchants and providing them with greater access to technology and financial services. Paytm plans to earmark Rs 2,000 crore for business initiatives, acquisitions and strategic partnerships and up to 25 per cent of the total fund raised through the IPO for general corporate purposes.

“The final price at which equity shares will be allotted to ASBA Bidders will be in terms of the red herring prospectus and the prospectus. Equity shares will be allotted to anchor investors at the anchor investor offer price, which will be decided by our Board or the IPO Committee, as applicable, in consultation with the JGC-BRLMs and the BRLMs, in terms of the red herring prospectus and the prospectus," the DRHP said.

The move came a day after the shareholders of One97 Communications approved its plans to raise Rs 12,000 crore through a fresh issue of shares.

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One97 posted a consolidated net loss of Rs 1,696 crore for the year ended March 31, lower than the previous year’s Rs 2,842 crore loss, according to the prospectus. Revenue slipped 14.6% to Rs 2,802 crore.

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first published:July 16, 2021, 11:39 IST