Paytm IPO: Company to file draft papers for $2.3 billion offering on 12 July

Payment company Paytm is going to draft a prospectus on 12 July for a domestic initial public offering (IPO) seeking to raise $2.3 billion. Livemint reported that two people who are close to the matter shared this development. The top two biggest public listings in India in dollar terms were Coal India Ltd and Reliance Power Ltd. With its $2.3 billion IPO, Paytm will become the third biggest public listing.New Paytm stocks are going to be sold along with a secondary offering of shares. The expected valuation of the same is $24 billion to $25 billion. If required then there will be an option to raise the amount at a later stage.The publication further reports that Paytm is eyeing for shareholder approval at the extraordinary general meeting (EGM) to sell up to Rs 12,000 crore ($1.61 billion) in new stock. It also wants to retain an over-subscription of up to 1 percent.The shareholders meeting is expected to take place on 12 July, reported Livemint. The company is backed by China's Alibaba and Japan's SoftBank.Sources have further said that Paytm has hired several financial securities firms for the IPO. They are Goldman Sachs, Morgan Stanley, JPMorgan Chase, ICICI Securities, Axis Capital, Citi, and HDFC Bank.Previously, The Economic Times had reported that the deadline for the submission of documents has been extended for shareholders, employees, and former employees by One97 Communications which is the parent company of Paytm. The shareholders were given additional time as the deadline was extended from 22 June to 30 June.