Digital payments major Paytm will be amongst the top 10 most-valued financial (banks included) stocks in the country when it gets listed later this year.
According to investment banking sources, the company is looking at a valuation of between $20 billion and $25 billion in the initial public offering (IPO).
One97 Communications, parent company of Paytm, on Friday filed its draft red herring prospectus (DRHP) with market regulator Securities and Exchange Board of India. The company is looking to raise Rs 8,300 crore by issuing fresh shares in its maiden stock market offering.
The IPO will also comprise Rs 8,300 crore worth of secondary share sale from existing shareholders which includes founder Vijay Shekhar Sharma, China’s financial powerhouse Ant Financial and e-commerce giant Alibaba.
According to reports, Paytm was last valued at $16 billion (Rs 1.2 trillion at current exchange rate).
The company is looking at 40-50 per cent higher value than its last valuation of $16 billion. However, the pricing will be finalised after taking investor feedback. Paytm will soon start roadshows to gauge investors’ interest,” said an official with one of the investment banks handling the share sale.
If Paytm is valued at $25 billion (Rs 1.87 trillion) it will be the ninth-most valuable company in the financial sector after Bajaj Finserv, which is currently valued at $25.8 billion or Rs 2.06 trillion.
The country’s most valuable financial services company is HDFC Bank, with a market cap of $112.6 billion or Rs 8.4 trillion.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.