Paytm is preparing to raise 22 thousand crore rupees through IPO.
Digital payment service provider Paytm IPO will include a fresh issue as well as a secondary share sale. In this, Paytm’s investors can sell shares based on rotation. During listing, Paytm can also do Stock Split.
New Delhi. The board of the country’s digital payment and financial services company, Paytm, has given in-principle approval to the Rs 22,000 crore public offer (Paytm IPO). The board meeting of Paytm’s parent company One97 Communications was held on May 28, 2021. This IPO of the company will be the largest public offer in the country so far. The company is eyeing a valuation of $ 25-30 billion for this IPO. Let us know that in 2019, when SoftBank invested $ 16 billion and Ant Financial, $ 1 billion in the company, the valuation of Paytm was $ 16 billion.
Digital payment company may split stock during listing
Paytm is currently the number one company in the digital payment service. The company started bill payment and mobile recharge service in 2010. At the same time, in 2014, Paytm launched a mobile wallet. It is being told that the company can apply the issue in June or July 2021. At the same time, the IPO is going to come from October to December 2021. The IPO will include a fresh issue as well as a secondary share sale. In this, Paytm’s investors can sell shares based on rotation. After getting the board’s permission for listing, Paytm’s investors will also have to take other approvals related to the IPO. According to sources, during the listing, Paytm can split the stock.
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Paytm’s revenue stood at Rs 3,280 crore in FY 2020, while its loss fell 30 per cent to Rs 2,942 crore. The company’s revenue base could double to $ 1 billion by FY 2023. Non-payment revenue has a 33 percent stake in it. Through this IPO, Paytm has targeted to make its valuation between $ 25 to 30 billion i.e. Rs 1.80 lakh crore to Rs 2.20 lakh crore. Paytm’s competition is Walmart’s PhonePe, Google Pay (Google Pay), Amazon Pay (Amazon Pay) and Facebook’s WhatsApp Pay (WhatsApp Pay) in India. Paytm has over 2 crore merchant partners. Its customers conduct 1.4 billion transactions a month.