India’s digital payment giant Paytm is set to go public during Diwali this year to raise Rs 21800 crore in the country’s largest ever public offering (IPO).
The Vijay Shekhar Sharma-led company is aiming for a valuation of around $ 25 billion- $ 30 billion through an IPO as its board is expected to formally meet this Friday to approve the same.
Morgan Stanley, JPMorgan Chase & Co., Citigroup Inc. are some of the banks that have been shortlisted to operate a Paytm IPO and the process is reported to begin in late June or early July.
The IPO will involve a combination of both new and existing shares to comply with India’s regulatory obligations, which require 10 percent and 25 percent shares in two and five years respectively.
Paytm, officially known as One97 Communications Pvt Ltd, has in the past year focused on building its revenue and monetizing its services.
It records 1.4 billion monthly transactions, hosts 20 million merchant partners and holds the largest market share of merchant payments in India.