One 97 Communications Pvt., which runs online payment platform Paytm Paytm, has filed its draft red herring prospectus with SEBI to raise Rs 16,600 crore initial public offering (IPO). The issue document includes Rs 8,300 crore in sale of new shares. Rs 8,300 crore in offer for sale by new shareholders.
Till date Coal India had come up with the biggest IPO issue of around Rs 15,500 crore which was listed in the last quarter of 2010.
According to the document, the company plans to raise Rs 8,300 crore through fresh equity and another Rs 8,300 crore through offer-for-sale.
The offer-for-sale proposes equity sale by the company's founder Vijay Shekhar Sharma, Alibaba group and its subsidiary firm Ant Financial, Elevation Capital, Saif Partners, BH International Holdings etc, according to the document.
The draft red herring prospectus (DRHP) does not disclose the share price and the percentage of stake to be diluted by any of the shareholders in the company.
Shareholders approved raising of Rs 12,000 crore during the initial public offer and sale of secondary shares will take the total amount to Rs 16,600 crore.
"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 Rs 12,000 crore during the IPO. The secondary raise will bring the total to Rs 16,600 crore," PTI said, quoting a source.
Shareholders approval
On Monday, shareholders at the EGM approved the proposal that Paytm founder Vijay Shekhar Sharma would not be identified as the 'promoter' of the company but will continue to be the chairman, managing director and chief executive officer of the company.
"As per SEBI rules, Paytm is a professionally managed company. No shareholder can have 'special rights'. That is just how listed companies need to be in India," the source said.
Till date Coal India had come up with the biggest IPO issue of around Rs 15,500 crore which was listed in the last quarter of 2010.
According to the source, the valuation of the firm is likely to be in the range of Rs 1.78 lakh crore to Rs 2.2 lakh crore. With this valuation range, Paytm is expected to be among top 10 listed financial services in the country.
Paytm shareholders include Alibaba's Ant Group (29.71 per cent), Softbank Vision Fund (19.63 per cent), SAIF Partners (18.56 per cent) and Vijay Shekhar Sharma (14.67 per cent). AGH Holding, T Rowe Price, Discovery Capital and Berkshire Hathaway are other shareholders in the company.
(With PTI inputs)
