Paytm had earlier targeted the IPO size at Rs 16,600 crore, comprising the sale of Rs 8,300 crore worth new shares.
Fintech giant Paytm’s parent firm One97 Communications will reportedly expand its public issue size to Rs 18,300 crore. The company will raise the sum with fresh issue valuing up to Rs 8,300 crore, and OFS (offer for sale) at Rs 10,000 crore.
The development was revealed in a RHP (Red Herring Prospectus) filed by the company on October 27, 2021.
Paytm had earlier targeted the IPO size at Rs 16,600 crore, comprising the sale of Rs 8,300 crore worth new shares. The planned size was unveiled in the draft prospectus filed by the company in July 2021.
Paytm’s Rs 16,600 crore worth public issue was India’s biggest IPO (Initial Public Offering), which is now elevated to Rs 18,300 crore.
About half of the company’s OFS (offer for sale) by existing shareholders will be by Paytm’s largest investor Ant Financial. The investor currently holds 29.6 per cent stake in the company as revealed by the people familiar with the development.
One of the people disclosed that besides the half of the secondary portion in OFS by the lead investor Ant Financial, the remaining will be by Softbank, Alibaba, Elevation Capital, and other existing shareholders. Paytm may list in BSE (Bombay Stock Exchange) as well as NSE (National Stock Exchange).
Those managing the sale of shares comprise investment entities like Morgan Stanley, Citigroup Inc., Goldman Sachs Group, and ICICI Securities Limited.
As per its draft share documents, the fintech establishment will use Rs 4,300 crore of the fresh issue to expand its existing business lines, customer reach, and acquire new merchants. While filing draft prospectus in July 2021, Paytm’s parent firm had shared that the proceeds of the IPO would be used to augment the company’s payment ecosystem, introducing new initiatives and for acquiring new businesses.
Unveiling the company’s recent updates, Paytm has reserved Rs 100 crore in order to fund its marketing campaigns ahead of the festive season. The fintech startup’s campaign includes Cash-Backs, Buy Now and Pay Later schemes. The campaign will be active till November 14, 2021.
One of the most significant elements of Paytm’s marketing campaign is the Paytm Cashback Dhamaka scheme. It is offered in all the districts and places in the country. However, special emphasis is given on states comprising Karnataka, Telangana, Andhra Pradesh, Gujarat, and Maharashtra.
(Includes Livemint inputs)