Paytm IPO Mumbai/IBNS: Digital payment company Paytm Friday filed draft papers to raise Rs 16,600 crore via an initial public offering, the biggest IPO launched by any company in India so far.
Paytm promoters include the Ant Group of Chinese tycoon Jack Ma, which has close to 30 per cent stake, along with Masayoshi Son's Softbank Vision Fund, Berkshire Hathaway and other high-profile investors.
Paytm founder holds less than 10 per cent stake in the company.
As a part of the IPO, Paytm will raise Rs 8,300 crore in primary share sales and Rs 8,300 crore will be an offer for sale, where existing shareholders can offload their shares, said a Money Control report.
Paytm pioneered digital payment technology transforming an economy that mostly relied on cash transactions.
According to the draft prospectus, Rs 4,300 crore of the proceeds will be used for growth including customer and merchant acquisition, Rs 2,000 crore will be used for investing in new business initiatives, acquisitions and strategic partnerships, the report added.
Paytm filed its Draft Red Herring Prospectus (DRHP) with SEBI days after its shareholders approved its proposal to raise Rs 12,000 crore through a fresh issue of shares at an extraordinary general meeting.
Paytm had earned a revenue of Rs 3,186 crore for FY 20-21 vs Rs 3,540 crore in the past year.
Its losses shrunk to Rs 1,701 crore during the same period from Rs 2,942 crore in the previous year.
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