Paytm IPO size to increase to Rs 18,300 cr; Alibaba’s Ant, Softbank, other shareholders to sell more stake

Paytm has decided to increase its IPO size to Rs 18,300 crore from Rs 16,600 earlier, according to a PTI report citing unidentified sources. The entire increase is to come from existing shareholders including Alibaba’s Ant Financial and Softbank selling more stakes. The fresh issue of equity shares worth Rs 8,300 crore remains the same, as in the original offer. The company had planned to raise a total of Rs 16,600 crore by issuing fresh equity worth Rs 8,300 crore and another Rs 8,300 crore through an offer-for-sale.

With existing shareholders deciding to dilute more equity, the offer-for-sale will go up by Rs 1,700 crore to Rs 10,000 crore. “Roughly half of the offer for sale is by Ant Financial and the remaining by Alibaba, Elevation Capital, Softbank, and other existing shareholders,” PTI quoted one of the sources as saying. Earlier, Softbank was not part of investors selling stake in the disclosure made by the company in its IPO draft paper.