It is not just Paytm Karo; Ab “Paytm IPO mein Invest Karo”
If everything goes as per plan, you can not only spend through Paytm but also invest in Paytm and participate in the incredible growth of digital payments in India. One97 Communications, the company behind Paytm, has filed for an overall IPO of Rs.16,600 crore. While Rs.8,300 crore will be raised through fresh issue, the balance Rs.8,300 crore will be by way of offer for sale. Paytm will be one more in a slew of internet companies like Zomato and MobiKwik that are on the IPO path. At Rs.16,600 crore, the Paytm IPO will be the largest IPO till date in India beating Coal India IPO, which raised Rs.15,000 crore in year 2010.
Once the public issue is completed, Vijay Shekhar Sharma will be declassified as promoter of Paytm as it requires 20% shareholding. Sharma currently owns just 14.61% in One97 Communications, the company that owns the Paytm platform. However, Mr. Sharma who is almost synonymous with the rise and growth of Paytm, will continue as the chairman and managing director of Paytm. Marquee global investors like Ant Group, Alibaba and Warren Buffett’s Berkshire Hathaway have a stake in Paytm.
Read : Interesting facts on Paytm
Paytm was one of the early ecommerce start-ups in India and has completed 21 years of operations. For FY21, Paytm had clocked revenues of Rs.3,186 crore while the net loss narrowed to Rs.1,701 crore. Like most internet businesses, Paytm is also a business where costs are front-ended and returns are back-ended. As per the last fund raising done in Nov-19 from T Rowe Price, Paytm was valued at $16 billion. However, the IPO valuation is expected to be much higher. Paytm is already India’s second most valuable internet company after Flipkart.
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