Paytm plans to India`s biggest IPO, Looks to raise 3 billion $ in India.
Swaraj singh dhanjal says:
One 97 Communications' board of directors may meet on Friday to review the listing details and request approval from the directors. Paytm may be valued at over $24 billion in India's largest IPO.
1). What is Paytm?
Paytm (a partial abbreviation for "pay through mobile") is a financial technology and e-commerce payment system firm established in Noida, Uttar Pradesh, India. Paytm is currently available in 11 Indian languages and provides online services such as cellphone recharges, utility bill payments, travel, movie, and event reservations, as well as grocery shop payments.
Mumbai/ Bengaluru: According to four people familiar with the situation, Paytm, India's largest online payments startup, wants to raise as much as $3 billion (21,700 crores) by offering shares to the public by the end of this year.
On the condition of anonymity, the individuals said that One97 Communications India Ltd, which runs the Paytm service, is in talks to recruit investment banks for its debut share offering in India, and that a few legal firms have already been hired to help with regulatory problems. They estimate that the payments company will raise $2.5-3 billion.
One of the four persons intimately aware of the negotiations claimed the company is in talks with investment banks such as Morgan Stanley, Citigroup, and JP Morgan for its anticipated initial public offering (IPO). According to the source, the company may consider a public offering towards the end of the year, around November.
A spokeswoman for Paytm declined to comment on the situation. Khaitan & Co's spokesman was unavailable for comment. JP Morgan did not respond to a request for comment. Morgan Stanley and Citi did not respond to emails made to them.
One97 Communications currently houses the company's travel and entertainment ticketing division, as well as its wealth management platform, Paytm Money, and gaming endeavor, Paytm Games.
For the fiscal year ending March 2020, One97 Communications reported sales of 3,628.85 crores, with losses falling 30% to 2,942.36 crores from 4,217.20 crores the previous year. Revenue remained practically unchanged from the previous fiscal year's $3,579.6 crore. Paytm reduced its total expenditure by 20% in 2019-20, to 6,226.31 crores from 7,730 crores in FY19.
During its first launch in 2017, the firm housed its wallet and payments under Paytm Payments Bank Pvt. Ltd, with founder Sharma controlling 51 percent of the company and the remainder controlled by One97 and its other subsidiaries.
According to a report published on May 27 by research firm Bernstein, Paytm's next phase of growth would be spearheaded by the delivery of credit technology products.
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