Ant-backed Paytm targets $ 2.2 billion Indian IPO in booming electronic payment market

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BENGALURU, July 16 (Reuters) – India’s digital payments leader Paytm, which counts Ant Group and Softbank (9984.T) among its backers, is seeking regulatory approval to raise up to Rs 166 billion (2, $ 23 billion) in one of the biggest stock market quotes in the country.

The offer, which values ​​the company up to $ 25 billion according to sources, comes at a time of a pandemic-fueled boom in India’s digital economy and an intensifying battle for shares of market with Google Pay and Facebook Inc of Alphabet Inc (GOOGL.O). -property (FB.O) WhatsApp Pay.

The company, formerly known as One97 Communications Ltd, will sell new shares worth Rs 83 billion while existing investors sell an additional Rs 83 billion in shares in the offering, the fintech startup said on Friday. local in a regulatory file.

“Businesses in the digital space have good growth potential due to the increasing number of internet users and wide access among young people,” said Ajit Mishra, vice president of research. at Religare Broking in Noida.

Paytm’s offer, whose backers also include Berkshire Hathaway Inc (BRKa.N), is expected to start a wave of IPOs by local fintech firms looking to exploit the capital markets for plans to expansion.

Founded by entrepreneur Vijay Shekhar Sharma, 43, the company was put in the spotlight in 2016 during India’s shock ban on high-value foreign currency banknotes, resulting in an increase digital payments. He helped Paytm expand its services to insurance and gold sales, movie and airplane ticketing, as well as bank deposits and remittances.

Paytm a mentionned it will use the funds from the IPO to strengthen its payments network and for acquisitions.

Several Indian startups have announced plans to go public as they cash in to take advantage of growing interest from foreign fund investors.

On Friday, a $ 1.3 billion stock offering of Indian food delivery start-up Zomato, backed by Ant Group, was nearly eight times oversubscribed Read more

Other projects in the works include a successful IPO by e-commerce giant owned by Walmart Inc, Flipkart, beauty brand Nykaa and ride-sharing service Ola.

One97’s consolidated net loss declined to 16.96 billion rupees for the fiscal year ended March, from 28.42 billion rupees a year earlier, according to the prospectus. Revenue fell 14.6% to 28.02 billion rupees.

One97 said it may consider a new issue of shares worth up to Indian rupees 20 billion before the IPO.

JPMorgan Chase (JPM.N), Morgan Stanley (MS.N), ICICI Securities (ICCI.NS), Goldman Sachs (GS.N), Axis Capital, Citi (CN) and HDFC Bank (HDBK.NS) advise on ‘Initial Public Offering.

($ 1 = 74.5140 Indian rupees)

Reporting by Vishwadha Chander, Chris Thomas and Shivani Singh in Bengaluru; Editing by Subhranshu Sahu, Anshuman Daga and Saumyadeb Chakrabarty

Our standards: Thomson Reuters Trust Principles.



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