Paytm last raised funds through a preferential allotment in November 2020. It issued 5,000 shares at Rs 18,678 apiece to Goldman Sach’s Mark Schwartz. Ahead of its IPO filing, the digital payments firm then split a share of face value of Rs 10 into 10 shares of Re 1 each.
At the last fundraise, Paytm was valued at more than Rs 1.1 lakh crore (about $15.3 billion at the current exchange rate).
The company plans to issue fresh shares worth Rs 8,300 crore in the IPO. And assuming that it will price shares at least at the November 2020 level, the maiden offer would fetch it a valuation of Rs 1.22 lakh crore ($16.4 billion).
While the valuation could be lower, that would also bring down the value of stake held by existing shareholders.
The November 2020 prices could serve as a base valuation as Paytm seeks feedback from investors during IPO roadshows.
One97 Communications is looking to raise Rs 16,600 crore ($2.22 billion) in the initial offer and may also raise Rs 2,000 crore ($268.2 million) in a pre-IPO private placement.
Regulatory guidelines require a company to offer at least 10% of post-issue paid-up equity capital in an IPO.
Assuming Rs 16,600 crore constitutes that 10%, the company will be valued at a minimum Rs 1.66 lakh crore (about $22.26 crore).
If it raises Rs 2,000 crore in pre-IPO placement, then that valuation will fall to Rs 1.46 lakh crore (about $19.58 billion).
Meaning, the IPO may value the firm between Rs 1.22 lakh crore and Rs 1.66 lakh crore.