The initial public offering (IPO) market was buzzing in the year 2020. Due to better liquidity position and encouraging response from investors, companies have raised crores of rupees through IPOs last year. The hustle and bustle in the IPO market is not over yet. Digital payments and financial services company Paytm has got the approval of its shareholders to launch the country’s largest public issue of Rs 16,600 crore. A source privy to the developments said that the shareholders have approved raising Rs 12,000 crore during the initial public issue and with the sale of secondary shares, the total would be Rs 16,600 crore.
In this context, the source said, “The shareholders have approved all the proposals in the Extraordinary General Meeting (EDM). Shareholders have approved the raising of capital during the IPO and issue of fresh shares up to Rs 12,000 crore. With the sale of secondary shares, a total of Rs 16,600 crore will be realized.
The company’s market valuation may be up to Rs 2.2 lakh crore
According to the source, the market valuation of the company after the IPO may increase to between Rs 1.78 lakh crore and Rs 2.2 lakh crore. After this Paytm is expected to be among the top 10 listed financial services in the country. The company may submit documents for the IPO this week.
Till now, Coal India had the record of largest IPO
Till now the record of largest IPO was held by Coal India. It had raised around Rs 15,500 crore in the last quarter of 2010. Alibaba’s Ant Group holds 29.71 per cent stake in Paytm, Japan’s Soft Bank 19.63 per cent, SAIF Partners 18.56 per cent and Vijay Shekhar Sharma 14.67 per cent.
What is IPO?
Whenever a company or government proposes to sell some shares to the general public for the first time, this process is called Initial Public Offering (IPO). Investors can earn good money by investing in IPO. Last year, companies raised Rs 31,000 crore from the primary market. A total of 16 IPO launches took place, out of which 15 were launched in the second half. In the full year of 2019, Rs 12,362 crore was raised through 16 IPOs. In 2018, 24 companies raised Rs 30,959 crore through IPOs. Rhe domestic stock market has started recovering due to the corona virus pandemic. In view of this, companies are continuously launching IPO.
