Digital payment startup Paytm has filed a draft prospectus for its initial public offering of 16,600 crore on Friday the day on which Zomato's IPO closes. As per the draft prospectus, JPMorgan Chase, Morgan Stanley, ICICI Securities, Goldman Sachs, Axis Capital, Citi and HDFC Bank are among the lead book-running managers for Paytm IPO, Reuters reported Digital payment startup Paytm has filed a draft prospectus for its initial public offering of 16,600 crore on Friday the day on which Zomato's IPO closes.
As per the draft prospectus, JPMorgan Chase, Morgan Stanley, ICICI Securities, Goldman Sachs, Axis Capital, Citi and HDFC Bank are among the lead book-running managers for Paytm IPO, Reuters reported Paytm IPO comprises fresh issue of up to 8,300 crore whisch is offer up for sale.
According to the draft prospectus, while Rs 4,300 crore of the proceeds will be used for growth including customer and merchant acquisition, Rs 2,000 crore will be used for investing in new business initiatives, acquisitions and strategic partnerships. Zomato IPO was opened on July 14 and on the second day it was oversubscribed 4.8 times, marking a visible shift in consumer behaviour, as a new set of investors debuted in the capital market through Zomato IPO.
Paytm Money offered to book of Zomato shares and said the average Zomato IPO investor was a year younger than what this platform has seen. "The average Zomato IPO investor was a year younger than applicants for previous IPOs on Paytm Money. Average investment in Zomato IPO on Day 1 was 20 per cent higher than average investment in previous IPOs on Paytm Money," Paytm Money said.
This is in line with Paytm's plan to become a PMC or a professionally managed company , which requires Sebi's approval. Under this norm, no single entity can own 25 percent or above in the company. The stakeholders on July 12 also approved the changes in the Employee Stock Options Plan besides the adoption of new articles of association.
Paytm had clocked revenue of Rs 3,186 crore for FY 20-21 vs Rs 3,540 crore in the previous year. It narrowed losses to Rs 1,701 crore during the same period from Rs 2,942 crore in the previous year. shareholders also gave their nod for Paytm founder and CEO Vijay Shekhar Sharma to be declassified as promoter, as he does not own the requisite 20 percent stake in the firm. Sharma currently owns a 14.61 percent stake in the company. Sharma will continue to be the Chairman, Managing Director and Chief Executive Officer of the company.