Paytm IPO size to increase to Rs 18,300 cr; Alibaba’s Ant, Softbank, other shareholders to sell more stake

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Updated: October 27, 2021 11:33 AM

Paytm has decided to increase its IPO size to Rs 18,300 crore from Rs 16,600 earlier, according to a PTI report citing unidentified sources

Paytm IPO, paytm issueThere is a large section of population who are underserved in payments and financial services products.

Paytm has decided to increase its IPO size to Rs 18,300 crore from Rs 16,600 earlier, according to a PTI report citing unidentified sources. The entire increase is to come from existing shareholders including Alibaba’s Ant Financial and Softbank selling more stakes. The fresh issue of equity shares worth Rs 8,300 crore remains the same, as in the original offer. The company had planned to raise a total of Rs 16,600 crore by issuing fresh equity worth Rs 8,300 crore and another Rs 8,300 crore through an offer-for-sale.

With existing shareholders deciding to dilute more equity, the offer-for-sale will go up by Rs 1,700 crore to Rs 10,000 crore. “Roughly half of the offer for sale is by Ant Financial and the remaining by Alibaba, Elevation Capital, Softbank, and other existing shareholders,” PTI quoted one of the sources as saying. Earlier, Softbank was not part of investors selling stake in the disclosure made by the company in its IPO draft paper.

Investors selling stake include

– Antfin (Netherlands) Holding BV: 29.6 per cent
– Alibaba.Com Singapore E-Commerce: 7.2 per cent
– Elevation Capital V FII Holdings: 0.7 per cent
– Elevation Capital V: 0.6 per cent stake
– SAIF III Mauritius Company: 12.1 per cent
– SAIF Partners India IV: 5.1 per cent
– SVF Panther (Cayman): 1.3 per cent
– BH International Holdings: 2.8 per cent

Alibaba group firm Antfin (Netherlands) Holding BV was required to sell at least 5 per cent stake to bring its shareholding below 25 per cent to comply with regulatory requirements. “Paytm will be listed as a professionally managed company. As per SEBI guideline, to be a professionally managed company, no single entity can hold over 25 per cent stake in the company,” PTO quotes another source as saying.

The company last week received market regulator SEBI approval for listing. Paytm will go for the public listing on both the Indian stock exchanges — BSE and NSE (National Stock Exchange)

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