India’s digital payments giant Paytm is set to go public during around Diwali this year in order to raise Rs 21800 crore in what could be the country’s largest initial public offering (IPO) ever.
The Vijay Shekhar Sharma-led company is aiming a valuation of about $25 billion-$30 billion through the IPO as its board is anticipated to meet this Friday to formally approve the same.
Morgan Stanley, JP Morgan Chase & Co, Citigroup Inc are some of the banks shortlisted to operate the Paytm IPO and the process is reported to kick-start by around late June or early July.
The IPO will include a combination of both new and existing shares in order to comply with India’s regulatory obligations that necessitate 10 per cent and 25 per cent of the shares to be floated in two and five years respectively.
Paytm, officially referred to as One97 Communications Pvt Ltd, has stressed upon building up its revenue and monetizing its services in the last year.
It records 1.4 billion monthly transactions, hosts 20 million merchant partners and holds the largest market share of India’s merchant payments, Economic Times reports.