Paytm to be the top 10 most-valued financial stocks in India
Published On: Friday, July 16, 2021 | By: Team KnowMyStock
Digital payments major Paytm will be amongst the top 10 most-valued financial (banks included) stocks in the country when it gets listed later this year. According to investment banking sources, the company is looking at a valuation of between $20 billion and $25 billion in the initial public offering (IPO). The parent company of Paytm, One97 Communications, today(16th July 2021) filed its draft red herring prospectus (DRHP) with market regulator Securities and Exchange Board of India. The company is looking to raise Rs 8,300 crore by issuing fresh shares in its maiden stock market offering. The IPO will also comprise Rs 8,300 crore worth of secondary share sale from existing shareholders, including founder Vijay Shekhar Sharma, China’s financial powerhouse Ant Financial and e-commerce giant Alibaba.
According to reports, Paytm was last valued at $16 billion (Rs 1.2 trillion at current exchange rate).
The company is looking at 40-50 per cent higher value than its last valuation of $16 billion. However, the pricing will be finalised after taking investor feedback. Paytm will soon start roadshows to gauge investors’ interest,” said an official with one of the investment banks handling the share sale.
If Paytm is valued at $25 billion (Rs 1.87 trillion) it will be the ninth-most valuable company in the financial sector after Bajaj Finserv.
The country’s most valuable financial services company is HDFC Bank, with a market cap of $112.6 billion or Rs 8.4 trillion.
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