Paytm board gives approval to upcoming IPO
Online payments and e-commerce business Paytm’s board has given its approval for the business’ planned Rs 22,000 crore ($3.3 billion) initial public offering which is scheduled for the October-to-December quarter this year.
Paytm expects an enterprise value of over Rs 2 lakh crore for the IPO and will discuss the matter further at its upcoming board meeting on Friday, ET Bureau reported. The board had decided to give the go ahead at its meeting on May 28.
“The board of directors of Paytm has given in-principle approval for the mega IPO planned to be launched in October-December quarter,” an anonymous source told the Press Trust of India. “The company expects to raise around Rs 21,000- Rs 22,000 crore from the IPO. This will also give some of the existing investors [a chance] to offload some of their stake.”
If Paytm is able to achieve its IPO target, it would make the IPO one of the largest in India’s financial history. The business currently counts the Softbank Vision Fund, Alibaba's Ant Group, and founder Vijay Shekhar Sharma, among others as shareholders.
The business, which runs an e-commerce platform and has numerous digital payment services, has reported a monthly transaction total of 1.4 billion making it one of the giants of the sector.
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