Fri. Mar 29th, 2024
Paytm- HDFC

Paytm, India’s largest digital payments and financial services company has filed for an IPO for Rs 16,600 crore, which is expected to be the country’s largest market debut and it is likely to test the waters in October. On Friday, the firm submitted its red herring prospectus draft, which revealed how the most well-known financial services brand is developing.

The business intends to raise Rs 8,300 crore through the new stock issue and another Rs 8,300 crore through an offer-for-sale, the draft document says.

In the proposed offer-for-sale, Paytm founder Vijay Shekhar Sharma (MD, CEO) and Alibaba group businesses are likely to dilute part of their ownership. 

Further, it can be noticed that investors like Antfin (Netherlands) Holding BV that control 29.6 per cent stake, Alibaba.Com Singapore E-Commerce Private Ltd controlling a 7.2 per cent stake and Elevation Capital V FII Holdings Ltd having 0.7 per cent of the stake in the company may vend their portion. 

SAIF III Mauritius Company Ltd has a 12.1 per cent stake, SAIF Partners India IV Ltd controlling 5.1 per cent of shares, SVF Panther (Cayman) Ltd having a 1.3 per cent stake and BH International Holdings with a 2.8 per cent stake are also likely to sell some stake.

According to the report by PTI, Alibaba group business Antfin (Netherlands) Holding BV would sell at least 5% of its stock to lower its shareholding below 25% in order to meet regulatory requirements.

Paytm’s Gross Merchant Volume (GMV) is growing at an incredible rate, with a year-over-year increase of over 100%. Paytm’s gross merchandise value (GMV) increased to Rs 1,469 billion in Q1FY22 from Rs 697 billion in Q1FY21. According to Redseer, one of the largest management consulting Indian companies, Paytm’s GMV for FY21 was Rs 4,033 billion, the highest in the payments industry.

Paytm has proposed spending Rs 4,300 crore to expand and strengthen the Paytm ecosystem, including by acquiring customers and merchants and giving them greater access to technology and financial services.

Paytm intends to set aside Rs 2,000 crore for business initiatives, acquisitions, and strategic alliances, as well as up to 25% of the total funds collected via the IPO for general corporate reasons.

Paytm, formerly known as One97 Communications, was founded in 2009 with the goal of making it easier for consumers to make digital payments and top up their credit cards using their cell phones. The platform has now grown to include a variety of services, including an eCommerce marketplace and ticket booking service, as well as the sale of insurance and digital gold.

 

By Harshita Sharma

I bring to you updates from business, policy and economy spectrum.

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