One97 Communications Ltd, which owns digital payments major Paytm, is in talks to rope in global sovereign wealth funds and financial firms including Abu Dhabi Investment Authority (ADIA) and Singapore’s GIC Pte as anchor investors in its upcoming public issue.
In July, One97 Communications had sought the markets regulator Securities and Exchange Board of India’s (Sebi) approval for its Rs16,600 crore (about $2.2 billion) initial public offering (IPO). While the draft preliminary prospectus was filed, the company is still awaiting approval from Sebi, the report said quoting sources.
The Vijay Shekhar Sharma-led Paytm is seeking a valuation of around $20-22 billion in the IPO based on initial investor feedback. The company is expected to get the market regulator’s approval this week and plans to launch share sale before this Diwali (November 4).
Paytm is the second most valuable Indian startup after edtech company Byju’s, which was reportedly valued at about $18 billion in its last fundraise. Some of the key investors in Paytm include Japan’s SoftBank Group Corp., Berkshire Hathaway Inc., and China’s Ant Group Co.
Paytm had narrowed its consolidated loss to Rs1,704 crore in 2020-21 from about Rs2,943.32 in 2019-20.