Paytm eyeing an issue size of ₹18,300 crore

Paytm, in its draft prospectus in early July this year, said it was targeting the issue size of ₹16,600 crore (about $2.2 billion), including the sale of new shares of ₹8,300 crores. Existing investors were expected to sell shares of another value ₹8,300 crores.

Paytm now hopes to raise secondary share sales from existing investors ₹10,000 crore as part of the increased IPO size. The people cited above said on condition of anonymity that the primary part of the fresh share issue will remain unchanged. He added that nearly half of the offer for sale by existing shareholders will be by Ant Financial, Paytm’s largest investor, which currently holds 29.6% of the company.

“About half of the secondary share in the offer for sale is by Ant Financial and the rest by Alibaba, Elevation Capital, SoftBank and other existing shareholders. It may be for professionally managed companies to comply with SEBI guidelines with no identifiable promoters, which Paytm is targeting to list.” Paytm may also list on both the Indian exchanges.

A Paytm spokesperson declined to comment on the development.

Mint reported on 23 October that the company could be listed on Indian stock exchanges by mid-November.

The news about Paytm’s increased IPO size comes at a time when the company has decided not to go ahead with it. ₹Bloomberg reported last week that Rs 2,000 crore has been raised ahead of the IPO due to unfavorable valuation results with investors.

The company plans to use ₹The fresh issue of Rs 4,300 crore to develop its existing business lines and acquire new merchants and customers, according to its draft share sale documents. Morgan Stanley, Goldman Sachs Group Inc., Citigroup Inc. and investment banks, including ICICI Securities Ltd., are managing the share sale.