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Paytm to skip pre-IPO round to meet post-Diwali listing target: Sources

Image Credit: DesiDime

Banking sources predict the company will list at a valuation of somewhere between $16 and $21 billion, making it the largest IPO in India’s history.

Paytm has chosen to forego its pre-IPO funding round while waiting for approval from markets regulator Securities and Exchange Board of India (SEBI) for its Rs 16,600 crore Initial Public Offering (IPO).

Bloomberg was the first to publish the news, citing sources. According to the report, Paytm has backed out of its Rs 2,000 crore pre-IPO plans due to valuation disagreements with investors.

However, according to Moneycontrol, the management is focused on fulfilling its goal of a November listing, shortly after the Diwali festival.

Because SEBI has yet to provide its approval, the payments and financial services company is considering foregoing a second round, despite disparities in the listing valuation.

“There are no valuation differences between investors and Paytm’s management. The company is heading for an IPO directly, to adhere to the timelines it had kept in mind,” said one of the sources mentioned above.

However, people familiar with the situation told Moneycontrol that the management is focused on fulfilling its goal of a November listing, shortly after the Diwali festival.

Because SEBI has yet to provide its approval, the payments and financial services company is considering foregoing a second round, despite disparities in the listing valuation.

One97 Communications filed for an IPO in July, part of a year that saw a slew of digital startups, beginning with Zomato, flock to D-Street. Zomato, too, skipped the pre-IPO phase and was listed at a 66 percent premium to its final offer price.

According to the business’s DRHP, the company made a consolidated loss of Rs 1,701 crore on revenue of Rs 2,802.4 crore in FY21 and a loss of Rs 2,942.4 crore on revenue of Rs 3,280.8 crore in FY20.

Paytm, India’s largest financial services company, has developed a multi-stack payment architecture to generate money.

Paytm’s IPO could be approved by the Securities and Exchange Board of India (SEBI) soon, according to sources.

Paytm serves over 333 million customers and over 21 million merchants with payment, commerce, and cloud services, as well as financial services (as on March 31, 2021).

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