Business News: Paytm board gives green signal to Rs 22,000 crore IPO
Paytm board gives in-principle approval for Rs 22,000 crore IPO
Digital payments and financial services firm Paytm has received in-principle approval from the company’s board to raise around ₹22,000 crore through an initial public offer during the October-December quarter this year.
The company is looking at an enterprise value of over ₹2 lakh crore for the IPO.
“The board of directors of Paytm has given in-principle approval for the mega IPO planned to be launched in October-December quarter. The company expects to raise around ₹21,000-₹22,000 crore from the IPO. This will also give some of the existing investors to offload some of their stake,” the source aware of the development told.
Paytm is expected to be one of the largest IPOs in India if the company is able to achieve its target.
Heading towards growth and achieving the great milestones
Currently one of the leading players in the digital payments space, Paytm started off as a bill-payments, mobile recharge platform in 2010. It launched a mobile wallet in 2014.
The firm has expanded beyond digital payments into banking, credit cards, financial services, wealth management and digital wallets. The company has tough competition from global players such as Walmart-owned PhonePe, Google Pay, Amazon Pay as well as Facebook-owned WhatsApp Pay in India.
At present, Paytm is valued at $16 billion, the proposed IPO will see its valuation rising to over $25 billion. After the board nod, the firm may seek shareholders’ approval, too.
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