Paytm to hike IPO size to Rs 18,300 cr as Alibaba Ant Soft bank dilute more stake | The size of Paytm’s IPO will increase to Rs 18,300 crore, Alibaba and SoftBank will reduce stake


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Paytm to increase IPO size to Rs 18,300 crore, Alibaba and SoftBank to reduce stake

New Delhi. Digitally providing financial services company Paytm Initial Public Offering (IPO) 18,300 crore to increase its size. Earlier, the company’s plan was to raise a total of Rs 16,600 crore through IPO. According to sources, the company’s largest shareholder Alibaba Group firm Ant Financial and other existing investors including SoftBank have decided to sell their majority stake in Paytm.

The previous plan to raise a total of Rs 16,600 crore through IPO included fresh issue of Rs 8,300 crore and Offer for Sale (OFS) of Rs 8,300 crore. The decision to sell more stake by existing shareholders will increase the size of the OFS by Rs 1,700 crore to Rs 10,000 crore.

A source said, “Around half of the sale offer is by Ant Financial and the rest by Alibaba, Elevation Capital, SoftBank and other existing shareholders.” Paytm did not mention the stake sale by SoftBank in its IPO document. Ant Financial has to sell at least 5 per cent stake to bring down its stake below 25 per cent as per regulatory requirements.



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