New Delhi: One97 Communications Ltd, the parent company of Paytm, is expected to raise $1.1 billion from anchor investors as a part of its $2.4 billion initial public offering. The company’s anchor round is expected to be closed on 3 November.
Some other established investors are expected to make their first investment in India by participating in Paytm’s public offering. The investment will be made through their tech-focused funds. Paytm has increased its issue size to Rs. 18,300 crore from Rs. 16,600 crore earlier last month.
There are a number of investors who want to subscribe to our entire anchor portion. We have money in the bank and are getting more customers and merchants at lower costs. We are positive that we will attract long-term shareholders and investors who will understand that the real value in Paytm is not about quarter-on-quarter profit delivery but on the long term change it brings,” said Vijay Shekhar Sharma, founder, chairman and managing director, One97 Communications Ltd, in a 29 October interview.
Paytm plans to use Rs. 4,300 crore of the IPO proceeds to grow its existing business lines and acquire new merchants and customers. It has no immediate plans to invest in overseas markets. “International is something we will be focusing on, once we feel the India market is matured enough,” Sharma said.
Paytm has expanded beyond digital payments into banking, credit cards, financial services and wealth management. It also supports India’s financial payments backbone, the Unified Payments Interface or UPI.
