Paytm Targets $3 Billion IPO in What Would Be India’s Largest Debut
- Digital payments pioneer is planning a debut late this year
- Morgan Stanley, JPMorgan shortlisted for banking support
Paytm, India’s leading digital payments provider, is aiming to raise about 218 billion rupees ($3 billion) in an initial public offering late this year, according to a person familiar with the deal, in what could be the country’s largest debut ever.
The startup, backed by investors including Berkshire Hathaway Inc., SoftBank Group Corp. and Ant Group Co., plans to list in India around November and its offering could coincide with the Diwali festival season, said the person, asking not to be named because the details are private. Paytm, formally called One97 Communications Ltd., is targeting a valuation of around $25 billion to $30 billion.
The One97 board plans to meet this Friday to formally approve the IPO, said the person. Paytm declined to comment in response to emailed questions.
If successful, Paytm’s initial share sale would surpass Coal India Ltd.’s offering, which raised more than 150 billion rupees in 2010 in the country’s largest IPO so far.
Banks shortlisted to run the Paytm offering include Morgan Stanley, Citigroup Inc. and JPMorgan Chase & Co., with Morgan Stanley the leading contender, the person said. The process is expected to get rolling in late June or early July. JPMorgan and Citigroup declined to comment; Morgan Stanley didn’t respond to requests for comment