Tag: draft

One97 Communications, the parent of Paytm, has filed a draft red herring prospectus with SEBI for its initial public offering. The size of the IPO is Rs 16,600 crore.

The issue comprises a fresh issue of equity shares amounting to Rs 8,300 crore and an offer for sale by existing shareholders of Rs 8,300 crore.

The company also retains the option, in discussion with BRLMs, to undertake a pre-IPO placement of Rs 2,000 crore.

If the pre-IPO placement is completed, the fresh issue size will be reduced to that extent.

As part of the OFS, existing shareholders, including Paytm founder and CEO Vijay Shekhar Sharma, Ant Financial, Alibaba group, Elevation Capital, Saif Partners and BH International Holdings will sell their shares.

The DRHP does not disclose the share price or the stake to be diluted by any of the shareholders.

Shareholders of One97 Communications had cleared the proposal for the IPO on July 12.

Paytm’s revenue from operations was Rs 2,800 crore from 11.4 crore annual transacting users. However, it continued to be loss-making.

Its losses came down by 42.2 per cent to Rs 1,701 crore in 2020-21, from Rs 2,942 crore in 2019-20. Losses amounted to Rs 4,230 crore in 2018-19.

Marketing expenses nearly halved to Rs 532.5 crore in 2020-21 from Rs 1,397.1 crore in 2019-20.

Lead managers appointed to the issue are Morgan Stanley India, Goldman Sachs (India) Securities, ICICI Securities, Axis Capital, JP Morgan India , Citigroup Global Markets India and HDFC Bank.

The IPO is expected to be launched towards the end of November.