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One97 Communications, the parent company of Paytm, is planning an initial public offering on November 8 with a price range of Rs 2,080 to Rs 2,150 per share, according to person’s familiar with the matter. On November 10, the IPO is likely to close.
According to these reports, the Vijay Shekhar Sharma-led company is aiming for a valuation of $20 billion in its next IPO, which is slightly lower than its first public offering (IPO) price of $22 billion.
Paytm is estimated to raise roughly Rs 18,300 crore from the IPO, which will surpass the Rs 15,000 crore raised by Coal India through its first public offering almost a decade ago.
This is higher than the previous aim of Rs 16,600 crore. When the business refiled its prospectus with the securities and markets regulator Sebi for fresh approval earlier this week, it boosted its offer for sale component, or OFS, to Rs 10,000 crore.
According to ET on Tuesday, China’s Ant Group, Paytm’s largest shareholder, will sell approximately half of the secondary shares in the impending Paytm IPO through OFS.
According to the report, the Softbank and Alibaba-backed company has also finalised plans to expand the entire IPO size by Rs 1,700 crore, bringing the total to Rs 18,300 crore.
The Rs 1,700 crore increase will be entirely funded by OFS, while the primary capital raise component would remain at Rs 8,300 crore.
This means Ant will sell shares worth up to Rs 5,000 crore, reducing its stake in Paytm parent One97 Communications to less than 25%. According to the company’s draught prospectus filed with the regulator, the additional issue will be used to expand the company’s existing business lines and acquire new merchants and customers worth Rs 4,300 crore.
The issuance will be managed by Morgan Stanley, Goldman Sachs Group Inc., Citigroup Inc., and ICICI Securities Ltd, according to the firm.
Story by : Norvisi Mawunyegah