Paytm files draft papers for $2.2 bn initial public offering

One97 Communications Limited, the parent company of payment services platform Paytm, on Thursday filed for an initial public offering (IPO). 

The IPO size stands at Rs 16,600 crore ($2.23 billion): Rs 8,300 crore will be raised through issuance of new shares and Rs 8,300 crore worth of shares will be part of an offer for sale.  

Selling shareholders include Vijay Shekhar Sharma, Alibaba, Elevation Capital, Softbank, and Berkshire Hathway.  

However, the portion of shareholding that will be sold by each investor has not been disclosed yet.

The company is expected to raise Rs 2,000 crore in a pre-IPO placement. In case it is able to complete the placement, the issuance portion of the IPO will be reduced by that amount. 

Up to Rs 4,300 crore of the net proceeds from the issuance of shares will be used for organic growth; up to Rs 2,000 crore for inorganic growth and the remaining for general corporate purposes.   

 The payment, commerce, cloud, and financial services platform had 333 million consumers and 21.1 million merchants as on March 31.   

ICICI Securities, JPMorgan, Citi, and HDFC Bank will act as the book running lead managers (BRLMs) for the issue and Morgan Stanley, Goldman Sachs, and Axis Capital will act as joint global coordinators and BRLMs (JGC-BRLMs).  

Shardul Amarchand Mangaldas & Co and Latham & Watkins LLP will act as the legal counsel to the company.

Khaitan & Co and Shearman & Sterling LLP will act as legal counsel to JGC-BRLMs and BRLMs.

Trilegal will be legal counsel to Alibaba, Algo Legal legal counsel for Berkshire Hathway, IndusLaw legal counsel to Elevation Capital, Cyril Amarchand Mangaldas and Morrison & Foerster LLP legal counsel to SoftBank, and J Sagar Associates will act as legal counsel for other selling shareholders.