Mumbai: Market Regulator Sebi has cleared the initial public offer of RS 16,600-Crore from One97 Communication, Paytm Parent Company.
This will make the biggest IPO ever in India.
The company is understood to target a list in November.
According to the Draft IPO document submitted by the company, ONE97 Communications plans to collect RS 8,300 Crore through the Fresh Edition of Equity Stock and other 8,300 Crore Rs through route bidding for sales (OFS).
RS 16,600-Crore Offers Will Make Paytm IPO The Largest Listing After Miner Public Sector Coal Rs 15,990 Crore IPO In 2010 and Reliance Power in 2008.
Zomato RS 9,375-Crore IPO This year is the largest public offering in more than a decade.
The success of the IPO Zomato has raised hope for new age companies that focus more on the scale of achievement than the bottom line.
ONE97 Communications reported a loss of Rs 1,704 Crore at FY21, down 42% from the previous fiscal.
The existing shareholders, which include groups and employees of the largest stakeholders and employees, will sell shares in the Category ofs.
Softbank, the capital of elevation, Saif partner, Berkshire Hathaway and Ratan Tata RNT Associates are other investors registered as selling shareholders below.
The success of the IPO will depend on the support he received from international investors who were given a scale of offerings.
The company is looking at an assessment of $ 20-22 billion.
If the company manages to get this assessment, it will be in the same league as Tata Steel or Tata Motors with an assessment of around Rs 1.6 Lakh Crore each.
Some bankers estimate that IPOs can lead to foreign inflows of more than $ 2 billion.
One97 communication, which was named after the 197 directory investigation number used by the state-owned telecommunications operator MTNL and BSNL, was established as a search service in 2001 by Vijay Shekhar Sharma.
It uses the paytm brand when moving to refill services.
The company developed into a digital wallet room and then became QR-based payment.
During demonetization, it quickly increases its business and today has a larger part of the payment of traders in terms of the number of traders.
Paytm Payment Bank (PPB), which was promoted by Sharma and ONE97 Communications, received a license from the RBI in 2017.
PPB has now tried to turn itself into a small financial bank.
Besides PPB, the PayTM Group includes paytm money.
Last year, Paytm signed an agreement to buy general insurance qbe.