Paytm board grants in-principle approval for around Rs. 22,000 crore IPO

Paytm, a digital payments and financial services company got approved by the company's board to raise ~ Rs. 22,000 crore (US4 3.04 billion) through an IPO (initial public offer) in the October-December quarter of 2021.

The company is aiming at an organisational value of > Rs. 2 lakh crore (US$ 27.63 billion) for the IPO, which is expected to be a topic of discussion at its board meeting scheduled for Friday.

Considering the company achieves the goal as per its plan, the development is expected to be one of the largest IPOs in India.

Key shareholders of Paytm include Alibaba's Ant Group (29.71%), Softbank Vision Fund (19.63%), Saif Partners (18.56%), Vijay Shekhar Sharma (14.67%).

The key shareholders who hold < 10% stake in the firm are AGH Holding, T Rowe Price and Discovery Capital, Berkshire Hathaway.

Paytm reports to be ~ 30-50% larger than mobile apps in the segment with > 1.4 billion monthly transactions.

In FY20, the company had reported an increase of revenue at Rs. 3,629 crore (US$ 501.41 million), on YoY basis.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.