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India’s biggest public listing in over a decade: Paytm’s $2.2 billion IPO

Paytm, an Indian financial technology company has announced plans of going public later this year.

The company is expected to be the biggest IPO made in the Indian Stock Exchange for over a decade.

DIWALI IPO RELEASE

The firm plans to raise roughly $2.2 billion through its IPO, of this total sum around $1.1 billion or a little more would be through fresh issue of shares and the remaining part of the offer size would be a secondary raise.




About 75% of its public issue is reserved for qualified institutional buyers, 15% for non-institutional investors and the remainder 10% for retail subscription due to consecutive year on year losses.

Right before the IPO the company also plans to raise funding worth $288 million.

SHAREHOLDING PATTERN

The company is a foreign-owned and controlled. This status is expected to remain the same even after the IPO.



Paytm founder, Vijay Shekhar Sharma owns about 14.67% of the company.

Ant Group has the biggest stake of 29.71%, followed by SoftBank Vision Fund with 19.63%, SAIF Partners owns 18.56%, Alibaba Group has about 7.18%, Berkshire Hathaway owns 2.76% and the remaining 7.49% is owned by multiple individuals or firms.

IPO GAIN

The company has been working to cut its year on year losses. The company is expected to break even sooner rather than later as its key growth driver is not cash-backs unlike its rivals. This gives Paytm a massive advantage when it comes to cost cutting compared to its competitors.

Presently the company is valued around $16 billion. When it hits the stock market in late November, the valuation is projected to rise anywhere between $24 billion to $30 billion. If things go as planned it might end up becoming the most valued startup in India.