New Delhi: Paytm, the leader in digital payments in India, has increased the size of its initial public offering to 183 billion rupees ($2.44 billion), up from 166 billion rupees, as existing shareholders look to sell more stock ahead of the country’s largest stock market listing.
Paytm was expected to set an IPO price range of 2,080-2,150 rupees per share, implying a valuation of around $20 billion, according to a source directly familiar with the matter.
According to the source, who did not want to be identified because the information was not public, the company increased the size of its IPO in response to increased investor demand.
Paytm did not immediately respond to a request for comment from Reuters.
Several companies, including Paytm, have entered India’s capital markets as investors ride a wave of liquidity that has propelled domestic markets to new highs. Zomato, a food delivery company that also has China’s Ant Group as a shareholder, has risen 77 percent since its initial public offering in July.
Paytm’s initial public offering (IPO) will begin on November 8th, with top investor Ant Financial selling shares worth 47.04 billion rupees, or nearly half of the offer for sale component. Ant currently owns 183.3 million Paytm shares, or a 27.9 percent stake.
While Paytm did not increase the size of its fresh issue component, which remains at 83 billion rupees, it did increase the size of its offer for sale component to 100 billion rupees from 83 billion rupees previously.
The IPO is expected to be the largest in Indian corporate history, breaking Coal India’s record of 150 billion rupees raised more than a decade ago.