scorecardresearch
Follow Us:
Thursday, December 02, 2021

Paytm may skip a pre-IPO round to fast-track listing

The sources involved with partners of the company in the IPO process said Paytm didn't want to add additional steps to the IPO and thus, is directly headed for the market listing.

By: PTI | New Delhi |
October 22, 2021 3:08:52 pm
Paytm, Paytm IPOA worker adjusts a hoarding of Paytm, a digital payments firm, in Ahmedabad, India, January 31, 2019. (REUTERS)

Fintech firm Paytm may skip the pre-IPO round to expedite the listing process, according to sources aware of the development.

The company is targetting to launch Rs 16,600 crore IPO before Diwali and is looking for valuation in the range of Rs 1.47 – 1.78 lakh crore.

The sources involved with partners of the company in the IPO process said Paytm didn’t want to add additional steps to the IPO and thus, is directly headed for the market listing.

“Pre-IPO is always just an option for companies heading for a market debut and it’s not exercised by most companies. It makes sense to put the Pre-IPO option in the DRHP, as otherwise, the company cannot raise any primary capital. Companies end up not taking up the Pre-IPO option as it only delays the process,” said one of the sources.

The company’s plan of shelving the pre-IPO raise is not related to any valuation differences, the source added.

US-based valuation expert Aswath Damodaran, who is a professor specialising in finance at the Stern School of Business at New York University, values the unlisted shares of the IPO-bound firm at Rs 2,950 apiece.

According to the sources, Paytm expects to receive the Sebi approval soon.

📣 The Indian Express is now on Telegram. Click here to join our channel (@indianexpress) and stay updated with the latest headlines

For all the latest Business News, download Indian Express App.

  • Newsguard
  • The Indian Express website has been rated GREEN for its credibility and trustworthiness by Newsguard, a global service that rates news sources for their journalistic standards.
  • Newsguard
Advertisement
Advertisement
Advertisement
Advertisement