Paytm files draft papers for Rs 16,600-cr IPO with Sebi

Payment gateway Paytm’s parent company has filed its draft red herrings prospectus (DRHP) to file for an IPO. The aggregate offer size of the IPO is Rs 16,600 crore.

The Issue comprises a Fresh Issue of equity shares of Face Value of Rs 1 each aggregating to Rs 8,300 crore and Offer for Sale by the existing shareholders, aggregating to Rs 8,300 crore. The company is also looking at a pre-IPO placement order of Rs 2,000 crore.

Morgan Stanley India Company Private Limited, Goldman Sachs (India) Securities Private Limited, ICICI Securities Limited, Axis Capital Limited, JP Morgan India Private Limited, Citigroup Global Markets India Private Ltd and HDFC Bank Limited are lead managers of the issue.

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As the company works towards going public, it continues to be a loss-making venture, though it has managed to bring down its losses.

While the company made losses of Rs 4,230 crore in FY19, in FY20 it had losses of Rs 2942 crore and in FY21, losses were at Rs 1,701 crore.

The company has brought down marketing costs considerably over the years. While it went on to spend over Rs 3,000 crore in FY19 on marketing, in FY21, it has been as low as Rs 532.5 crore.