Paytm mulls scrapping pre-IPO sale plan on valuation variations

Paytm, the Indian digital funds pioneer backed by Jack Ma’s Ant Group Co., is contemplating scrapping the proposed 20 billion rupees ($268 million) share sale forward of its preliminary public providing over valuation variations, in line with folks aware of the event.
The agency had been in search of a valuation of above $20 billion based mostly on preliminary investor suggestions, whereas advisers on the deal really useful a decrease pricing, a number of the folks mentioned, asking to not be named as the knowledge is non-public. The firm was final valued at $16 billion, in line with unicorn tracker CB Insights.
Formally referred to as One97 Communications Ltd., Paytm hopes to faucet into sturdy investor demand fueled by simple liquidity that has buoyed India’s blockbuster listings this 12 months. The firm had reported a ten% drop in income in the course of the 12 months ended March 2021, after intensifying competitors from Walmart Inc.’s Flipkart and Amazon.com Inc. lower its e-commerce and cloud gross sales by the identical quantity.
A closing determination hasn’t been made and Paytm might nonetheless take into account a pre-IPO sale doubtlessly at a decrease valuation, the folks mentioned. Regulators are anticipated to approve the itemizing in coming days, a number of the folks mentioned.
Representatives for the corporate didn’t reply to an electronic mail in search of remark.
Banks together with Morgan Stanley, Goldman Sachs Group Inc., Citigroup Inc. and ICICI Securities Ltd. are operating the share sale. Paytm might take into account a pre-IPO placement of as a lot as 20 billion rupees, it had mentioned within the Draft Red Herring Prospectus filed with the Securities and Exchange Board of India on July 16.