Paytm files draft paper for ₹16,600 crore IPO with SEBI
Published On: Friday, July 16, 2021 | By: Team KnowMyStock
Paytm, digital payments and financial services firm has filed a draft red herring prospectus (DRHP) with market regulator SEBI, to launch Rs 16,600-crore IPO.The Paytm IPO would comprise a fresh issue of shares worth Rs 8,300 crore ($1.1 billion) and an equally large secondary share sale, the Noida-based fintech startup has told the Securities and Exchange Board of India (Sebi). On Monday, Paytm received the approval of its shareholders to raise capital through IPO, which is billed to be the country's biggest public offer of ₹16,000. "Shareholders have approved all the proposals at the extraordinary general meeting. The shareholders have approved the proposal to raise capital and the fresh issue of shares of up to ₹12,000 crore during the IPO. The secondary raise will bring the total to ₹16,600 crore," news agency PTI reported, citing a source.
Paytm has planned to utilise the Rs 4,300 crore worth of net proceeds for growing and strengthening Paytm ecosystem, through acquisition and retention of consumers and merchants and providing them with greater access to technology and financial services. While Rs 2,000 crore will be used for investing in new business initiatives, acquisitions and strategic partnerships; and for general corporate purposes.The price band for the Paytm IPO will be determined either at the time of filing the red herring prospectus (RHP) or prior to the IPO opening for the subscription.
Tags: Paytm IPO draft paper SEBI
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