Digital payment and financial service company Paytm is coming up with the biggest IPO ( Initial public offering ). If a company offers its shares to the public for the first time under the primary market, then it is called IPO. This company will bring an IPO of 16,600 crores. The company has sent an application to the market regulator SEBI ( securities and exchange board of India) for the IPO.
According to this draft given to SEBI, the value of this Noida-based company is being said to be $ 16 billion. The company said that in this IPO there will be an offer for sale (OFS) of Rs 8,300 crore and a fresh issue of Rs 8,300 crore. Before this, the IPO of 15,475 crores of Coal India, which came in 2010, was the biggest IPO ever.
What will be changed?
After the arrival of the new IPO, the holding of prominent promoter Vijay Shekhar Sharma will be reduced. And also holding of the famous Chinese company Ali Baba will be reduced. Nowadays the process of online payment has become very fast. In this, the number of people investing in Paytm is more. Despite this, the company was running at a loss for three years. Now Paytm has earned its name in the market. This company will grow very fast in the coming time. This is a golden opportunity for investors. Good profit can be earned by investing in this new IPO brought by Paytm.
According to the DRHP ( draft red herring prospectus) filed with SEBI, 75 percent of the IPO is reserved for Qualified Institutional Buyers (QIBs). After the launch of this new IPO, JPMorgan Chase, Morgan Stanley, ICICI Securities, Goldman Sachs, Axis Capital, Citi, and HDFC Bank will be made booking running managers. If experts are to be believed, Paytm may also participate in the privatization process of public sector banks. After listing in the stock market through IPO, this task will become easier for the company.