Biggest IPO ever! Paytm could pip Coal India in largest market debut

Paytm, the leading payments company led by Vijay Shekhar Sharma, plans to raise about Rs 21,800 crore though an initial public offer (IPO) this year.

This could be the largest market debut ever for an Indian company. The share sale could surpass the Coal India IPO , India's largest IPO till date, through which the state-owned mining company raised more than Rs 15,000 crore in 2010.

Paytm plans to make its market debut in India around November this year, according to a Bloomberg report. The firm is backed by investors including Berkshire Hathaway Inc, SoftBank Group Corp. and Ant Group Co. Paytm is targeting a valuation of around $25 billion to $30 billion from the IPO.

Its board plans to meet tomorrow to formally clear the Paytm IPO. Merchant bankers who have been shortlisted for IPO include Morgan Stanley, Citigroup Inc. and JPMorgan Chase & Co.

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The IPO will include a mix of new and existing shares to meet regulatory obligations in India. According to market regulator Sebi's norms, 10% of shares are floated within two years and 25% within five years.

Paytm is led by founder and Chief Executive Officer Vijay Shekhar Sharma. The firm has been focusing on raising revenue and monetising its services over the past year.

The firm has expanded beyond digital payments into banking, credit cards, financial services, wealth management and digital wallets. In India, Paytm has faced stiff competition from global players such as Walmart Inc.-owned PhonePe, Google Pay, Amazon Pay as well as Facebook Inc.-owned WhatsApp Pay.

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The firm has the biggest market share of India's merchant payments. Paytm has over 20 million merchant partners and its users make 1.4 billion monthly transactions, according to numbers in a recent company blog post. CEO Sharma recently said Paytm clocked its best ever quarter in the first three months of this year.