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In order to join as anchor investors for Paytm’s Initial Public Offering (IPO), various sovereign wealth funds and financial investors like Abu Dhabi Investment Authority (AIDA), Singapore’s GIC, and BlackRock have showed interest, according to The Economic Times report on Thursday. Adding to that, the Canada Pension Plan Investment Board (CPPIB) were also in talks with the fintech company and was looking for a bid in the Paytm parent One97 Communications upcoming $2.2 billion IPO.
Paytm’s $2.2 billion IPO is split equally between fresh issuance of shares and secondary share sale (Offer For Sale) and is one of the largest IPOs in India in over a decade.
It is the second most valued startup after ed-tech firm Byju’s, whose IPO will be watched closely on the heels of Zomato’s successful debut in the bourses.
Company awaiting Sebi’s approval
To indicate the popularity of an IPO for the ones like Paytm, large scale investors typically look to foray as anchor investors. Following that, they are allotted shares a day before the IPO at a fixed price. In addition to that, the publication added that the Softbank and Ant Group backed payments startup is looking for a $20-$22 billion valuation.
The Noida based startup is awaiting final approval from the Securities and Exchange Board Of India (Sebi), after which it will file its Red Herring Prospectus (RHP). It is keen on going public before Diwali.
It is believed that the capital markets regulator has already sent queries to the company and Paytm had replied for the same. Now, Sebi’s window to seek additional comments remains open, the publication said.
Paytm had also kept a window for a pre-IPO round of $270 million or Rs 2,000 crore, but is unclear whether it would happen before it goes public.