Shardul Amarchand among law firms advising Paytm raise India's largest IPO
One 97 Communications Limited's Red Herring Prospectus with SEBI to raise India's largest ₹16,600 crore IPO
The Indian financial technology company Paytm, owned by One 97 Communications Ltd, has filed a Draft Red Herring Prospectus before the Securities Exchange Board of India (SEBI) to bring India's largest-ever IPO.
The Draft Red Herring Prospectus was filed on behalf of Vijay Sharma, founder of India's premier digital payment system. The IPO intends to raise a record ₹16,600 crore.
In terms of the fundraise, the Paytm IPO will beat Coal India IPO in 2010. The Coal India IPO that opened on 18 October 2010 mobilized ₹236,000 crore ($52.4 billion), although the target was to raise only ₹15,500 crore ($3.4 billion).
Paytm IPO would become the second Indian company to go for IPO this month following food delivery company Zomato, which witnessed a favourable fundraise.
A total of 11 law firms, including four Indian, have represented various stakeholders in the Paytm IPO. Shardul Amarchand Mangaldas as its India Counsel represented Paytm while Latham & Watkins was the International Counsels to Paytm.
Notably, Pallavi Shroff, Managing Partner of Shardul Amarchand Mangaldas, is also on the Board of Paytm as Independent Director. Paytm and Amarchand Mangaldas relationship goes back to 2011 when Paytm raised one of its first funding from SAP Ventures.
Paytm, founded in 2009, has over the last decade raised funds from Private Equity companies. In 2015, Alibaba and its affiliate Ant Financial invested $680 million in Paytm. Shardul Amarchand Mangaldas and Trilegal were the lead counsels at that time. Then in 2017, Paytm received a $1.4 billion investment from Softbank in a deal valuing Paytm at $7 billion.