Paytm gets SEBI approval for biggest Indian IPO in at least a decade

Paytm gets SEBI approval for biggest Indian IPO in at least a decade


Mumbai: Paytm’s parent One97 Communications has received a nod from the Securities and Exchange Board of India’s (SEBI) for its much-anticipated Rs 16,600 crore initial public offering (IPO), sources told ET.

The official disclosure from SEBI is expected soon, sources said. With Sebi’s approval, Paytm can now launch its issue once it includes the observations the regulator may have made to its draft red herring prospectus (DRHP). The company is aiming to list on the Indian bourses by November 4, coinciding with the festival of Diwali.

The fintech startup’s mega-IPO, which will be one of the largest in India’s public market history, will see it raise Rs 8,300 crore through primary share sale and Rs 8,300 crore through secondary sale via an offer for sale (OFS).

ET reported earlier this month that Paytm’s IPO has garnered interest from likes of Canada’s CPPIB, US-based asset manager Alkeon Capital as well as funds managed by Morgan Stanley and Goldman Sachs. The new investors join a list of bidders that are in talks to invest in Paytm’s anchor investment as well as its IPO. The firm is unlikely to raise funds in a pre-IPO placement.

The firm is likely to seek a valuation between $20-24 billion for its listing. The firm was valued around $16 billion in its previous round over two years ago. The development comes at a time when a slew of new age internet startups have initiated proceedings to make listing debut including the likes of Nykaa, Policybazaar, Zomato among others.

One97 Communications, which was founded by Vijay Shekhar Sharma over two decades ago, counts the likes of Ant Financial, Alibaba, Elevation Capital, SoftBank Vision Fund, among its investors.

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