Paytm said to target $3-billion IPO, largest ever for India: Report

[bhaigan]

Paytm, India’s leading digital payments provider, is aiming to raise about Rs 21,800 crore ($3 billion) in an initial public offering late this year, according to a person familiar with the deal, in what could be the country’s largest debut ever.

The startup, backed by investors including Berkshire Hathaway Inc., SoftBank Group Corp. and Ant Group Co., plans to list in India around November and its offering could coincide with the Diwali festival season, said the person, asking not to be named because the details are private. Paytm, formally called One97 Communications Ltd., is targeting a valuation of around $25 billion to $30 billion.

The One97 board plans to meet this Friday to formally approve the IPO, said the person. Paytm declined to comment in response to emailed questions.

If successful, Paytm’s initial share sale would surpass Coal India Ltd.’s offering, which raised more than Rs 15,000 crore in 2010 in the country’s largest IPO so far.

Banks shortlisted to run the Paytm offering include Morgan Stanley, Citigroup Inc. and JPMorgan Chase & Co., with Morgan Stanley the leading contender, the person said. The process is expected to get rolling in late June or early July. The banks did not immediately respond to requests for comment.

The public market debut will include a mix of new and existing shares to meet regulatory obligations in India. The country’s regulations require that 10% of shares are floated within two years and 25% within five years.

Paytm, led by founder and Chief Executive Officer Vijay Shekhar Sharma, has been focusing on ramping up revenue and monetizing its services over the past year. It’s expanded beyond digital payments into banking, credit cards, financial services, wealth management and digital wallets. It also supports India’s financial payments backbone, the Unified Payments Interface or UPI.

Paytm has fended off stiff competition from a swath of global players including Walmart Inc.-owned PhonePe, Google Pay, Amazon Pay as well as Facebook Inc.-owned WhatsApp Pay. It has the biggest market share of India’s merchant payments.

Paytm has over 20 million merchant partners and its users make 1.4 billion monthly transactions, according to numbers in a recent company blog post.

In a recent conversation, CEO Sharma said Paytm had its best ever quarter in the first three months of this year after pandemic-related spending spurred digital payments.

[pandemkodi]

Selling shares in secondary market at 18.5b Val 

[rapchik123]

10 minutes ago, pandemkodi said:

Selling shares in secondary market at 18.5b Val 

anyways who's going to buy into this over valued crap of a company

[pandemkodi]

2 minutes ago, rapchik123 said:

anyways who's going to buy into this over valued crap of a company

Is it bad one ? Buffet invested in it .

[rapchik123]

4 minutes ago, pandemkodi said:

Is it bad one ? Buffet invested in it .

their aim was to be a 100bill $ company , and its valuation is based on those projections but lately phonepe and Gpay have pickedup a lot in India , paytm is going to have a really tough time in the future for sure and the entire market knows about , this IPO is going to be disastrous if they are really planning to value it at 25-30Bill

[RunRaajaRun123]

Will they start services in US?

[MiryalgudaMaruthiRao]

super Jagan Anna Army happy

[pandemkodi]

53 minutes ago, rapchik123 said:

their aim was to be a 100bill $ company , and its valuation is based on those projections but lately phonepe and Gpay have pickedup a lot in India , paytm is going to have a really tough time in the future for sure and the entire market knows about , this IPO is going to be disastrous if they are really planning to value it at 25-30Bill

They r expanding outside it seems .. agree the valuation is crazy and us investors migh not go crazy after this name .

[Pitta]