courtesy-TheIndianExpress
An 11% shrink in the revenues was observed by IPO-bound One97 Communications ltd., the parent brand and owner of Paytm for the fiscal year 2020-2021 (FY’21) which came to an amount of ₹3186.8 crore, compared to the fiscal year 2020 with an amount of ₹3540.77 crore as claimed by the company’s annual report which was shared with the shareholders on Saturday.
Losses were cut by 42% due to a drop in the revenue because of the pandemic and amount came to ₹1701 crore at the fiscal year ending March 2021, on consolidated basis. During the listing process, Paytm’s losses continue to be a matter of concern even though it has reduced it’s burns.
There is possibility for the company to potentially look to break even in 2021 along with profitability in sight as per the guidance given by the founder of Paytm, Vijay Shekhar Sharma in January. The company is most likely to file its draft red herring prospectus (DRHP) by July with an objective of giving its public debut by November end 2021.
The company plans to raise primary funds from a fresh issue of shares to Quality Institutional Buyers (QIB) based on the conditions set by the Security exchange board of India (SEBI). In order to kickstart the IPO process, the company is in talks with Axis Capital, ICICI Securities, SBI Capital Market along with JP Morgan, Citigroup and Morgan Stanley with regards to appoint bankers for the same.
To offer a portion of the company’s stake to retail investors, a Liquidity event for long term shareholders would also be provided by the IPO.