Paytm gets SEBI nod for Rs 16,600-crore IPO

India's largest IPO (initial public offering) to date is around the corner with financial services firm, One97 Communications (parent company of Paytm) getting the SEBI's approval, top sources privy to the development confirmed to BusinessToday.In.

The issue worth Rs 16,600 crore ($2.2 billion) comprises a fresh issue of equity shares of the face value of Rs 1 each, aggregating to Rs 8,300 crore and the offer for sale by the existing shareholders, aggregating to Rs 8,300 crore.

The IPO, slated to happen during the festive season later this year, will put behind some traditional energy, fuel companies like Coal India( Rs15,475 crore IPO) and Reliance Power(Rs11,700 crore IPO) behind it, essentially signalling a transition of the economy from oil to data.

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Paytm will debut on the stock exchanges at a valuation of nearly $30 billion, almost double its earlier $16 billion valuations.

Almost all the key shareholders including founder Vijay Shekhar Sharma, Softbank, China's Ant Financial group, Alibaba, SAIF partners are reducing their stakes whereas business magnate Ratan Tata's fund and other minority stakeholders may exit the company fully. The company is also looking to raise Rs 2000 crore (nearly $250 million) in a pre-IPO round from various investors.

Also read: Paytm boss Vijay Shekhar Sharma to get ESOPs for first time before IPO

Also read: Paytm IPO: Foreign investors valuing co at $20-22 bn