Paytm to hike IPO size to Rs 18,300 cr as Alibaba's Ant, other investors dilute more stake

Digital financial services firm Paytm will increase its initial public offer size to Rs 18,300 with company's biggest shareholder Alibaba group firm Ant Financial and existing investors including Softbank deciding to dilute more stake in the company, sources said.

The company had plans 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.

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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," one of the sources said.

Softbank was not part of investors selling stake in the disclosure made by the company in its IPO draft paper.

According to the document, investors selling stake included Antfin (Netherlands) Holding BV (which has 29.6 per cent stake), Alibaba.Com Singapore E-Commerce (7.2 per cent) and Elevation Capital V FII Holdings (0.7 per cent).

Elevation Capital V (which has 0.6 per cent stake), SAIF III Mauritius Company (12.1 per cent), SAIF Partners India IV (5.1 per cent), SVF Panther (Cayman) (1.3 per cent) and BH International Holdings (2.8 per cent) were also participating in OFS.

Alibaba group firm Antfin (Netherlands) Holding BV was required to sell at least 5 per cent stake to bring its shareholding below 25 per cent to comply with regulatory requirements.

"Paytm will be listed as a professionally managed company. As per SEBI guideline, to be a professionally managed company, no single entity can hold over 25 per cent stake in the company," another source said.

The company last week received market regulator SEBI approval for listing. Paytm will go for the public listing on both the Indian stock exchanges - BSE and NSE.