Paytm IPO Target Jumps to $2.4B+ After Stock Dilution
Digital financial services firm Paytm is boosting its initial public offering (IPO) to Rs 18,300 (more than $2.4 billion) after Ant Financial, SoftBank and other existing investors said they would dilute more of their shares, according to a report on Wednesday (Oct. 27) in The Tribune.
The company was trying to raise Rs 16,600 crore ($2.2 billion) by equity worth Rs 8,300 crore ($1.1 billion) and another Rs 8,300 crore ($1.1 billion) through an offer-for-sale, the report stated. Now, though, the offer-for-sale will go up by Rs 1,700 crore (almost $230 million) to Rs 10,000 crore ($1.3 billion).
“Roughly half of the offer for sale is by Ant Financial, and the remaining by Alibaba, Elevation Capital, SoftBank and other existing shareholders,” one of the sources told The Tribune. SoftBank hadn’t been planning to sell its stake when Paytm filed its draft IPO paperwork, the report noted.
Investors selling a stake in Paytm, according to the draft IPO, included Antfin (Netherlands) Holding BV (which has a 29.6% stake), Alibaba.Com Singapore eCommerce (7.2%) and Elevation Capital V FII Holdings (0.7%).
Elevation Capital V (which has a 0.6% stake), SAIF III Mauritius Company (12.1%), SAIF Partners India IV (5.1%), SVF Panther (Cayman) (1.3%) and BH International Holdings (2.8%) also own pieces of Paytm.
Alibaba group firm Antfin (Netherlands) Holding BV was required to sell at least 5% of its stake in Paytm to bring its shareholding below 25% to comply with regulatory requirements, because Paytm will be listed as a professionally managed company.
Last week, Paytm got approval from market regulator SEBI for its IPO, which it plans to list on both Indian stock exchanges – Bombay Stock Exchange and National Stock Exchange of India.
Related news: Swiss Re Grabs 23% of Paytm Insuretech for $122.6M
Paytm on Wednesday (Oct. 27) also announced that Switzerland-based reinsurance platform Swiss Re will purchase a 23% stake of Paytm Insuretech, Paytm’s insurance unit, for about 920 crore rupee (a little over $122.6 million).
More than one-third of Swiss Re’s investment will come upfront via equity shares and compulsorily convertible preference shares. The rest will come in stages based on Paytm Insuretech hitting previously agreed-upon milestones.
Payment Insuretech also recently acquired Raheja QBE. Both transactions wioll require regulatory approval.