Paytm, the country’s leading digital payment company is planning to launch an IPO this year. The company can raise 21 thousand 900 crore rupees through it. If it brings an IPO before LIC, it will be the largest IPO in the country.
Paytm has large investors
According to the information, among the investors in Paytm are Berkshire Hathaway, Softbank Group, and Ant Group. These are all big investors. Berkshire is the largest stock market investor in the world, Warren Buffett, while SoftBank is from Japan and Ant Group is the company of Alibaba Group of China. All these are planning to list Paytm by November this year. It is believed that this company can be brought to the stock market on Diwali.
2 to 2.20 Lakh Crore Valuation
Paytm is actually under One 97 communication. Its valuation is around 2 to 2.20 lakh crore rupees. One 97 Communication Board is planning to meet on Friday i.e. tomorrow in this matter and the IPO can be approved in this meeting. Among the bankers to be selected for Paytm IPO are Morgan Stanley, Citigroup, JP Morgan. Morgan Stanley is at the forefront. The process for this IPO can begin in June or July.
Both old and new shares will be issued
Both the initial and new shares in the IPO will be issued. This is because the company bringing the IPO has to pay 10% to the public in the first two years, while it has to be increased to 25% in the next five years. That is, the promoter should have a maximum 75% share. Although this rule was 3 years ago, SEBI has increased it to 5 years this year. This has been done before the IPO of LIC, the largest IPO of the country till date.
Focus on increasing revenue
Vijay Shekhar Sharma, founder of Paytm, has been focusing on increasing revenue for the last few years. The company provides services beyond digital to banking, credit cards, financial services, wealth management and digital wallets. It provides UPI based payment service. Paytm competes with Walmart’s Phone Pay, Google Pay, Amazon Pay and Facebook WhatsApp Pay. It holds the largest stake in India’s merchant payments. Paytm has over 20 million merchant partners. Its customers conduct 1.4 billion transactions a month.