Paytm is set to start its Initial Public Offering (IPO) anytime within the next few days. The regulator for stock markets SEBI has granted its approval to Paytm to begin an IPO that will cost Rs 16,600 crore. It is believed that within the next few days Paytm is going to release the exact date for the IPO.
In addition, it is anticipated that the company will announce an IPO on the market in the period of Diwali during the last week of October or at the beginning of the month. Paytm plans to accelerate the listing, excluding pre-IPO share sales.
The market has been awaiting the Paytm IPO for quite a while. Following Coal India’s IPO worth the sum of Rs 15,200 crore in the year 2010 it is expected to be the largest-ever IPO. Paytm is expecting a valuation between 20 and 22 billion dollars. Paytm has stated in its prospectus draft that it plans to sell a mix of existing and new shares.
In the proposed IPO the company intends to raise around Rs 8,300 crore by a new equity share issue and an offer of up to 8,300 crores to sell. IPO founder managing director, the chief executive chairman (CEO) Vijay Shekhar Sharma, and Alibaba Group companies will also sell their stakes in the sale proposal. Alibaba Group firm Antfin (Netherlands) could sell a 5 percent stake in Holding to cut their stake of 25% to satisfy legal requirements.
Paytm has the highest amount of merchants on the market. There are more than 20 million merchant partners within its network. The company claims that its customers make transactions of 1.4 billion rupees each month.
Paytm remains the second-highest valued online company in India. In November it raised a fund that was worth $1 billion. It came from Rowe Price, Discovery Capital, and D1 Capital. Its value at the moment was $15 billion. It is expected that the company will go public in November of this year. The company filed DRHP in July.
Most significant IPO in time of India
This is the biggest IPO ever recorded in the past of India. The previous time, the state-owned Coal India had brought an IPO that was worth 15 thousand crores. Paytm was established in the decade 2000 with the help of Vijay Shekhar Sharma. It was in 2010 when the business launched its recharges for mobile phones. Since it, the company constantly expanded the reach of its services and, currently using the Paytm application, everything such as hotel booking, the train ticket is done.
Giants around the globe have made investments
The world’s top investors have expressed their trust in this business. Chinese billionaire Jack Ma’s business Ant Financial has invested heavily in this. Other than that, Alibaba Singapore, three funds from Elevation Capital, SoftBank Vision Fund, and BH International Holdings have invested in the firm.
It was a massive decrease in losses
When we examine the company’s performance its overall revenue for the company for the year 2030-21 was $3186 million. In the prior financial year i.e. 2019-20, the total revenues of the company were 3540 crores. The company has cut its losses substantially. In the fiscal year 2021, its total loss was Rs 1701 crore. That stood at Rs.2942 crore the previous year’s financial year.
CEO Enjoyed After Approval By SEBI
It was an occasion of joy in Paytm itself. Why not? The company’s IPO was accepted by SEBI. The CEO of the company Vijay Shekhar Sharma was so content that he began dancing in happiness. His video is gaining popularity across social platforms.
When they saw his dance, people who watched him dance gave him the highest rating of rock star dancing. Kishore Kumar’s track can be heard playing in the background. The lyrics are Apni to Jaise Taise there’s no one going goes back and forth, and Paytm Chief Executive Officer Vijay Shekhar Sharma is seen performing a rousing dance on the song.
CEO Vijay Share Sharma’s 14.67 percentage part in Paytm
The list of owners who own Paytm includes Alibaba’s Ant Group (29.71 percent), SoftBank Vision Fund (19.63 percent), Saif Partners (18.56 percent) as well as Vijay Shekhar Sharma (14.67 per percent). AGH Holding, T Rowe Price, and Discovery Capital, and Berkshire Hathaway together have less than 10 percent of the stake.
Paytm has fought hard to beat the challenge of PhonePe, Google Pay, Amazon Pay, and WhatsApp Pay in the Indian digital payment system. Paytm has the highest market share of merchant payments across the nation. Paytm CEO and founder Vijay Shekhar Sharma have been striving to increase revenues and profit from Paytm’s services for the last year.
The company is also expanding its services into credit cards, banking wealth management, financial services along digital wallets. We can tell you that Paytm is home to more than two million merchant partners. In the wake of the pandemic, there was huge growth for Paytm transactions.