Foreign Investors Are Interested In Paytm IPO, Valued At $20-22 Billion
According to sources, the IPO has piqued the interest of sovereign wealth funds and foreign institutional investors, who value the company at $20-22 billion. According to them, a sovereign wealth fund has proposed to buy over $500 million worth of Paytm stock in the IPO.
According to those familiar with the IPO process, Paytm's initial public offering (IPO), which is India's largest-ever, is gaining traction.According to the persons who spoke on the condition of anonymity, the digital payments startup is receiving demand from sovereign wealth funds (SWFs) and foreign institutional investors (FIIs) valued at $20-122 billion.
According to the people, and SWF has offered to acquire over $500 million worth of shares in the IPO. According to prior estimates, the corporation was expecting a worth of up to $30 billion. According to the people, Paytm is looking for an IPO before Diwali and is awaiting approval from market regulator Securities and Exchange Board of India (SEBI), which is likely this week.
Paytm declined to comment on a query from Moneycontrol on the IPO valuation and timeline. The company is currently in a so-called silent period during which it is required to make no market-sensitive public comment.
Paytm filed its share sale prospectus in July for a Rs 16,600 crore IPO, with a sale of fresh stock and offer for sale (OFS) by shareholders each worth Rs 8,300 crore. It allows the company to raise Rs 2,000 crore in a pre-IPO round. According to the sources quoted above, the company has yet to decide on the pre-IPO round, which is contingent on factors such as investor needs, tax consequences, and the lock-in period.
In the offer for sale section of the IPO, founder Vijay Shekhar Sharma and other shareholders will sell a portion of their stock. Elevation Capital owns 17.65% of the company, SoftBank owns 18.73 per cent, and Alibaba and its affiliate Ant Group own 38 percent. Sharma owns 15% of the firm and will no longer be identified as a promoter after it is listed on the stock exchanges. Paytm wants to be a professionally managed company after it is listed.