By Sankalp Phartiyal and Chris Thomas
BENGALURU -Indian digital payments leader Paytm has boosted the size of its initial public offering to 183 billion rupees ($2.44 billion) from 166 billion rupees, as existing shareholders look to sell more stake ahead of the country’s largest stock market listing.
Paytm was likely to target a price band of 2,080-2,150 rupees per share for the IPO for a likely valuation of around $20 billion, a source directly aware of the matter told Reuters.
The company increased the size of its IPO as it received increased investor demand, said the source, who did not wanted to be named as the information was not public.
Paytm did not immediately respond to a Reuters request for comment.
Several companies including Paytm have jumped into India’s capital markets as investors ride a wave of liquidity that has taken domestic markets to record highs. Food delivery firm Zomato, which also counts China’s Ant Group as a shareholder, is up 77% since its listing in July.
Paytm’s offering will open on Nov. 8 and will see top investor Ant Financial sell shares worth 47.04 billion rupees, or nearly half the offer for sale component. Ant currently holds 183.3 million shares, or a 27.9% stake, in Paytm.
While Paytm did not increase the size of its fresh issue component, which still stands at 83 billion rupees, it expanded the offer for sale part to 100 billion rupees from 83 billion rupees earlier.
The IPO is likely to be the biggest in India’s corporate history, breaking a record held by Coal India, which raised 150 billion rupees more than a decade ago.
($1 = 74.9493 Indian rupees)
(Reporting by Chandini Monnappa, Chris Thomas, Vishwadha Chander in Bengaluru; Editing by Maju Samuel)