Paytm files for Rs 16,600 crore IPO, read more details here

A large number of investors are waiting for the Initial Public Offering (IPO) of mobile payments company Paytm. While it has already gained a lot of attention, more details have emerged about the company's decision to go public. According to the draft presented by Paytm to the market regulator SEBI, it will bring an IPO worth Rs 16,600 crore. 

The company filed DRHP with the market regulator SEBI on Friday and if approved by SEBI, it will be the biggest IPO ever.

Paytm will issue fresh equity shares worth Rs 8,300 crore, while there will also be an offer for sale (OFS) of Rs 8,300 crore, in which existing investors will be able to sell their shares. Apart from this, the company may issue additional shares worth Rs 2,000 crore. An issue of Rs 2000 crore may be considered through private placement. 

The proposal to launch Paytm's IPO was approved by the company's board in early June last month.

Paytm IPO price band

By size, this will be the biggest IPO ever. Before this, the IPO of Coal India came in the year 2010 and the company had raised Rs 15,200 crore through it. While the size of Paytm's IPO has been decided, its price band is yet to be decided. It is likely to be decided before the IPO opens for subscription.

Morgan Stanley India, Goldman Sachs, and Axis Capital have been appointed as Joint Global Coordinators BRLM (Book Running Lead Manager) for Paytm IPO. While ICICI Securities, JP Morgan India, Citigroup Global Markets India and HDFC Bank have been appointed as Book Running Lead Managers for the share issue. Link Intime India has been appointed as Registrar.

A total of 75% stake in Paytm's IPO is reserved for Qualified Institutional Buyers (QIBs). In this, up to 60 percent can be kept safe for anchor investors. 15% of the net offer can be for non-institutional investors. Only 10% can be reserved for retail investors. 

Even before the IPO, the company has made a big change in its management only last week. All Chinese citizens on board have been shown the way out while Americans and Indians have been appointed in their place. However, no change has been made in the existing shareholdings.