One97 Communications, the parent of Paytm, has filed draft papers with the Securities and Exchange Board of India (Sebi) for the country’s biggest initial public offering (IPO) of Rs 16,600 crore.
The company will issue fresh shares worth Rs 8,300 crore, while the existing shareholders will offload their stakes worth another Rs 8,300 crore.
The company also retains the option to undertake a pre-IPO placement of Rs 2,000 crore, subject to relevant approvals. If this placement is completed, the size of the fresh issue will be reduced to that extent.
At present, Coal India holds the record for India’s largest IPO of over Rs 15,199 crore in 2010.
The top five shareholders of One97 Communications are ANT Financial through Antfin (Netherlands) Holding B.V (29.6 per cent), SVF India Holdings (Cayman) Ltd or SoftBank Vision Fund (18.3 per cent) and SAIF III Mauritius Company Ltd (12.1 per cent), Vijay Shekhar Sharma (9.6 per cent) and Alibaba.com Singapore E-Commerce Pvt Ltd (7.2 per cent).
Some of the shareholders who will sell part of their holding are Sharma, ANT Financial, Alibaba, SAIF Partners and SoftBank, the offer document showed.
One97 Communications said the issue proceeds will be utilised to strengthen its payment ecosystem. The company will utilise Rs 4,300 crore to acquire and retain consumers and merchants and provide them with greater access to technology and financial services. It will invest Rs 2,000 crore in new business initiatives, acquisitions and strategic partnerships.
The company had posted revenues of Rs 3,232 crore in 2018-19 and Rs 3,281 crore in the following fiscal. However, its topline came down to Rs 2,802 crore in 2020-21.
Zomato offer response
Zomato’s IPO got subscribed by more than 38 times on its third and final day.
Zomato received bids for 2,751.25 crore shares against 71.92 crore shares on offer, stock exchange data showed.
Institutional investors, who shied away in the first two days of the IPO, bid several times over the number of shares reserved for them.
While qualified institutional buyers (QIBs) bid almost 52 times the quota reserved for them, non-institutional investors sought 640 crore shares against their quota of 19.43 crore. Retail investors bid 7.45 times against the 12.95 crore shares reserved for them. The portion reserved for employees was subscribed by 0.62 times.
Delhivery-FedEx deal
FedEx Express, a subsidiary of leading global express transportation company FedEx Corp, will invest $100 million in e-commerce logistics platform Delhivery.
FedEx Express India and Delhivery have entered into equity and commercial agreements that will utilise their combined strengths to unlock India’s international trade potential. The transaction is subject to closing conditions, including regulatory approvals.
