Alibaba Is The Real Winner From India's Biggest IPO - Read How

India's leading digital ecosystem Paytm owner One97 Communications sets for a November 8 initial public offer ( IPO) at a valuation of $19.3–19.9 billion, Times of India reports.

Paytm with over 317 million users and over 21.8 million registered merchants, plans to raise ₹183 billion ($2.4 billion), marking India's largest IPO to date.

Paytm upsized its IPO size by ₹17 billion from the earlier estimate of ₹166 billion since existing shareholders, including Alibaba Group Holding Ltd's BABA Ant Financial and SoftBank Group Corp SFTBY SFTBF, want to sell more stake.

Paytm aims to raise ₹83 billion through new issues and the remaining INR100 billion through an offer for sale (OFS) from existing stakeholders in the company. 

Around 75% of the proceeds are earmarked for Qualified Institutional Buyers (QIBs), 15% for non-institutional investors (NIIs), and the remaining 10% for retail investors during the issue.

Roughly half of the offer for sale is by Ant Financial and the remaining by Alibaba, Elevation Capital, Softbank, and other existing shareholders.

Paytm founder Vijay Shekhar Sharma will sell shares worth ₹4 billion ($53 million). 

However, the biggest gainer will be investor Alibaba since its subsidiaries ANT Group and Alibaba.com will sell cumulatively shares worth ₹54.88 billion ($733 million). Ant Group will sell shares worth ₹47 billion, Alibaba.com will sell shares worth ₹7.85 billion. 

Ant Group owns a little over 29% in One97 Communications and will have to bring down its holding to below 25% as per Indian regulations, while Alibaba owns a 7.2% stake. 

SoftBank, which owns 19.6%, will be selling shares worth INR16.89 billion, while Elevation Capital, which owns a 17.2% stake, will be selling shares worth INR20.3 billion.

Related Content: Alibaba, SoftBank Backed Indian Online Payment Startup Paytm Eyes $2.2B IPO: TechCrunch

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