{"id":301424,"date":"2021-07-16T16:41:25","date_gmt":"2021-07-16T13:41:25","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/paytms-expected-2-2bn-ipo-fuels-india-market\/"},"modified":"2021-07-16T16:41:25","modified_gmt":"2021-07-16T13:41:25","slug":"paytms-expected-2-2bn-ipo-fuels-india-market","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/paytms-expected-2-2bn-ipo-fuels-india-market\/","title":{"rendered":"#Paytm’s expected $2.2bn IPO fuels India market"},"content":{"rendered":"

“#Paytm’s expected $2.2bn IPO fuels India market<\/strong>”<\/p>\n

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\"Paytm
\n Paytm founder and chief executive Vijay Shekhar Sharma, who has a net worth of $2.3 billion according to Forbes, holds just under 10 percent of the company.
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Digital payments pioneer Paytm on Friday took a major step towards launching India’s biggest initial public offering, telling regulators that it would seek to sell $2.2 billion in shares.<\/p>\n

The offering is the latest in a wave of IPOs in India, with food delivery firm Zomato this week raising $1.3 billion.<\/p>\n

Paytm is backed by the Ant Group of Chinese tycoon Jack Ma, which holds a nearly 30 percent stake, along with Masayoshi Son’s Softbank Vision Fund, Berkshire Hathaway and other high-profile investors.<\/p>\n

Founder and chief executive Vijay Shekhar Sharma, who has a net worth of $2.3 billion according to Forbes, holds just under 10 percent of the company.<\/p>\n

As a part of the IPO, Paytm will issue fresh shares worth 83 billion rupees and sell an equal amount of shares through a sale offer, according to its prospectus filed with Indian regulators.<\/p>\n

Since 2010, Paytm has become a key digital payments enterprise in a country dominated by cash transactions.<\/p>\n

It has benefited from the government’s efforts to curb cash transactions\u2014including the cancellation of nearly all banknotes in 2016\u2014and from the coronavirus pandemic.<\/p>\n

Over 21 million Indian shop owners, vendors and other merchants accept payments of 10 rupees (13 US cents) to several thousand rupees using Paytm’s QR code or mobile numbers.<\/p>\n

As of March 31, Paytm Payments Bank has 333 million customers, according to its regulatory filing.<\/p>\n

The company said it undertook transactions worth more than four trillion rupees ($54 billion) in 2020-21, making Paytm India’s largest payments platform.<\/p>\n

But Paytm has made continual losses and is not sure if it will make a profit. It reported a net loss of 17 billion rupees last year, on revenues of 31.86 billion rupees.<\/p>\n

“We expect to continue to incur net losses for the foreseeable future and we may not achieve or maintain profitability in the future,” the prospectus warned.<\/p>\n

Paytm has reported negative cash flows for the last three years, primarily due to operational losses.<\/p>\n

Big-ticket tech issues are heating up India’s IPO market. The share issue by Zomato\u2014which has also never reported a profit\u2014has seen a strong investor response and companies like Delhivery and Mobikwik expect to follow.<\/p>\n

With a target of $2.2 billion, Paytm would surpass Coal India’s $2 billion issue in 2010 to become India’s biggest IPO and propel the country’s primary market to its best year ever.<\/p>\n

Paytm’s public offer is expected to launch in the coming months following app<\/a>roval from Indian regulators.\n <\/p>\n\n

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India food delivery giant Zomato kicks off $1.3bn IPO\n <\/p><\/div>\n

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\n \u00a9 2021 AFP<\/p>\n

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\n Paytm’s expected $2.2bn IPO fuels India market (2021, July 16)
\n retrieved 17 July 2021
\n from https:\/\/techxplore.com\/news<\/a>\/2021-07-paytm-22bn-ipo-fuels-india.html<\/p>\n

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