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Digital payments firm Paytm is seeing strong demand for its initial public offering (IPO) from sovereign wealth funds and foreign institutional investors who are valuing the Noida-headquartered company at $20-$22 billion, MoneyControl reported.

The company had filed draft papers with the Securities and Exchange Board of India (Sebi) for its IPO in July and is looking to raise Rs 16,600 crore ($2.2 billion). Paytm is expected to get the market regulator’s approval this week and is looking to launch the IPO before Diwali, the report said citing sources.

The company has received an offer from a sovereign wealth fund to buy over $500 million of shares in the IPO, it said.

Paytm, which counts Ant Group and SoftBank among its backers, narrowed its operating loss to Rs 1,655 crore in the financial year ending March 2021 from Rs 2,468 crore a year ago.

As per the company’s draft red herring prospectus, it is looking to raise Rs 8,300 crore through issuance of fresh equity shares and another Rs 8,300 crore through offer-for-sale.

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